IndusInd Bank Shares Edge Higher Amid Muted Q1 Results
Despite the absence of one-off losses seen in Q4FY25, underlying stress in asset quality continues to weigh on the bank’s performance.
Shares of IndusInd Bank rose 0.92% on Tuesday, defying a tepid set of financial results for the first quarter of FY26.
The lender reported a standalone net profit of Rs 684 crore for the June quarter, recovering from a loss of Rs 2,236 crore in the previous quarter. The figure was broadly in line with Bloomberg’s consensus estimate of Rs 653 crore.
This marks the second quarterly disclosure since the derivative accounting controversy that had previously shaken investor confidence and raised questions about governance and succession planning.
Despite the absence of one-off losses seen in Q4FY25, underlying stress in asset quality continues to weigh on the bank’s performance. The gross non-performing asset (GNPA) ratio rose to 3.64%, up from 3.13% in the previous quarter, while net NPA increased to 1.12% from 0.95%.
The bank’s microfinance loan book, which accounts for 8% of total advances, saw a sequential decline of 8% to Rs 28,408 crore. GNPA from this segment rose to Rs 5,298 crore from Rs 4,531 crore.
Fresh slippages during the quarter stood at Rs 2,567 crore, down from Rs 5,014 crore in Q4FY25. Write-offs also declined to Rs 664 crore from Rs 1,816 crore. Recoveries and upgrades were marginally higher at ₹239 crore and Rs 230 crore, respectively.
On the profitability front, net interest income (NII) surged 52% year-on-year to Rs 4,640 crore, compared to Rs 3,048 crore in the previous quarter. The net interest margin (NIM) improved to 3.46%, up from 2.25%, indicating a return to operational normalcy.
