IndusInd Bank Q1 Profit Jumps 72 Pc; Aims for Stronger Profits as Clean-Up Concludes

Private lender IndusInd Bank on Wednesday posted a 72% jump in its consolidated profit after tax to ₹1,037.05 crore for the June quarter, and guided towards a stronger profit show going ahead, saying its balance sheet has strengthened by actions of the past year.

The city-based lender had reported a net profit of ₹604.07 crore in the year-ago period, and ₹594.17 crore in the quarter-ago period.

"... the strategic actions undertaken over the past year have materially strengthened the quality of our balance sheet, earnings profile and operating platform. We are entering FY27 from a position of greater resilience, with stronger fundamentals and improving business momentum," its managing director and chief executive Rajiv Anand, who had to be brought in after the exit of Sumanth Kathpalia amid allegations of fraud and malfeasance against bank officials last year, told reporters here.

Accelerating profit growth across segments is a priority, along with deepening deposit franchise, scaling transaction banking, and leveraging digital and AI investments to enhance customer experience, productivity and risk management, he added.

"With strong capital, ample liquidity, improving asset quality and a strengthened operating platform, we are well positioned to deliver sustainable growth, steadily improve profitability and returns," he added.

It can be noted that the allegations of fraud, which included wrongful accounting practices and also certain wrongful practices in the microfinance business, had led the bank to report losses for a quarter.

For the April-June 2026 period, its core net interest income grew 1% to ₹4,685 crore on the back of a 2% reduction in loans and net interest margin compressing to 3.35% versus 3.46% excluding one-off of a ₹284 crore income tax refund.

Anand said the NIMs are likely to expand in the second half of the fiscal, and maintained that the bank will be able to show a loan growth at par with the industry in FY27.

Other income fell 17% to ₹1,787 crore during the quarter.

The bottomline was helped by a 21% reduction in provisions and contingencies at ₹1,384 crore.

The gross non performing assets ratio improved to 3.25% at the end of the quarter and the gross slippages declined to ₹1,660 crore from ₹2,567 crore in the year-ago period.

On the FCNR(B) deposits window opened by the RBI, Anand exuded confidence that the bank will be able to facilitate deposits at par with its overall FCNR deposit market share of 3.6% but declined to specify a target or the leverage it is prepared to offer.