Shares of IndusInd Bank declined close to 6% in intraday trade on Thursday despite the lender reporting a sharp rise in profit.
The stock was trading at Rs 1,007 apiece, losing over 62 points on NSE around 11:30 am today, down from its previous close at Rs 1,069.3.
Investors appeared to focus on the modest growth in core income and the bank's capital-raising plans, even as profit surged and asset quality improved during the quarter.
Profit Surges 47%, Asset Quality Improves.
IndusInd Bank reported a net profit of Rs 1,003 crore for the quarter ended June 30, 2026, up 46.5% from Rs 684 crore in the year-ago period.
However, net interest income (NII) increased marginally by 1% to Rs 4,685 crore from Rs 4,640 crore a year earlier, and this is perhaps making the investors cautious.
Operating profit of the state-lender also marginally increased by 1.2% to Rs 2,683 crore. The bank's net interest margin (NIM) improved to 3.57% from 3.46% in the previous quarter.
Coming to asset quality, gross non-performing asset (GNPA) ratio improved to 3.25% from 3.43% in the March quarter, while the net NPA ratio improved to 0.95% from 1.00%.
“During Q1FY27, we continued to execute our strategic priorities with an emphasis on disciplined growth, balance sheet resilience and franchise quality. Supported by an experienced leadership team and sharper execution capabilities, we are advancing our growth agenda while maintaining prudent risk management. We are building a diversified portfolio across retail, SME and rural businesses, including expanding the rural franchise beyond microfinance. At the same time, our investments in technology and AI-led capabilities are enhancing customer experience and overall productivity, strengthening our ability to deliver sustainable growth,” IndusInd Bank's MD and CEO, Mr. Rajiv Anand, said while commenting on the results.
ALSO READ: IndusInd Bank Q1 Results: Profit Jumps 47% As Provisions Decline; NII Up Marginally.
IndusInd Bank Approves Capital Raising Plans
Alongside its earnings, IndusInd Bank's board approved raising up to Rs 20,000 crore through debt securities on a private placement basis, subject to shareholder and regulatory approvals.
The board also approved plans to raise up to Rs 10,000 crore through equity instruments and/or convertible securities, including qualified institutional placements (QIPs), ADRs, GDRs or other permitted routes, subject to necessary approvals.
The bank also announced that its 32nd AGM will be held on August 27, 2026, through video conferencing.
Stock in Focus Over a Year
Despite the significant rise in profits and improving asset quality, the stock fell over 6% today, but surged over 11.5% during the past month.
Over a year, the stock rose more than 18.6%, even amid a muted banking sector performance as the benchmark index, Nifty Bank, was down 0.8% during the period.
The stock traded within the range of Rs 710.6 apiece and Rs 1,077.85 during the past 52 weeks and is currently trading at a price-to-earnings multiple of 63.01x.
ALSO READ: IndusInd Bank Q1: One Brokerage Sees A Multi-Year Turnaround, Another Stays Cautious
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