IndusInd Bank's consolidated net profit rose 72% year-on-year to ₹1,037 crore in the June quarter, while net interest income remained almost unchanged.
Lower provisions and improved asset quality supported earnings despite a decline in fee income and advances.
The lender said it remains focused on disciplined growth, portfolio quality and expanding its retail, SME and rural businesses.
IndusInd Bank Q1 Results: Net Profit Jumps 72% YoY to ₹1,037 Cr; Asset Quality Improves
Lower provisions and improved asset quality helped IndusInd Bank report a sharp rise in June-quarter profit, even as net interest income remained largely flat
Business Standard
Summary
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Private sector lender IndusInd Bank reported a 72% year-on-year (YoY) rise in its consolidated net profit to ₹1,037 crore for the quarter ended June 30, compared with ₹604 crore in the corresponding quarter last year, according to its stock exchange filing.
Net interest income (NII), a key measure of a bank's core earnings, remained largely unchanged at ₹4,685 crore during the quarter, compared with ₹4,640 crore a year earlier.
The lender's pre-provision operating profit (PPOP) increased to ₹2,773 crore from ₹2,567 crore in the year-ago period, while net interest margin (NIM) improved to 3.57% from 3.46%.
Lower Provisions Boost Bottom Line
The bank's fee and other income declined to ₹1,787 crore from ₹2,157 crore a year ago, resulting in net revenue falling to ₹6,471 crore from ₹6,797 crore.
Operating expenses, however, dropped to ₹3,698 crore from ₹4,229 crore in the corresponding quarter last year, helping the lender improve operating profitability despite lower non-interest income.
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Provisions and contingencies, excluding tax, fell to ₹1,384 crore from ₹1,760 crore a year earlier, supporting the sharp increase in net profit.
Asset Quality Improves Despite Lower Advances
IndusInd Bank's advances declined to ₹3.26 lakh crore from ₹3.33 lakh crore a year ago as the lender continued to focus on portfolio quality and disciplined growth.
Gross non-performing assets (GNPA) improved to 3.25% of gross advances as of June 30, 2026, from 3.64% a year earlier and 3.43% at the end of March 2026. Net NPA also improved to 0.95% from 1.12% in the year-ago quarter and 1% in the March quarter.
The provision coverage ratio rose to 71.42% from 70% a year ago, while the bank's total capital adequacy ratio under Basel III improved to 17.15% from 16.63%, reflecting a stronger capital position.
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Bank Focuses on Disciplined Growth
Commenting on the results, Managing Director and CEO Rajiv Anand said the bank continued to execute its strategy with a focus on disciplined growth, balance sheet resilience and franchise quality.
"During Q1FY27, we continued to execute our strategic priorities with an emphasis on disciplined growth, balance sheet resilience and franchise quality," Anand said.
He said the bank is building a diversified portfolio across retail, SME and rural businesses, while expanding its rural franchise beyond microfinance. Anand added that investments in technology and AI-led capabilities are helping improve customer experience and productivity, supporting the bank's long-term growth plans.
"Our investments in technology and AI-led capabilities are enhancing customer experience and overall productivity, strengthening our ability to deliver sustainable growth," he added.