IndusInd Bank Q3FY26 profit plunges 90% to ₹128 crore, NII down 13%

IndusInd Bank reported a sharp fall in profit in Q3FY26 amid a decline in net interest income, while asset quality weakened with gross NPAs rising to 3.56 per cent

Private lender IndusInd Bank on Friday reported a 90 per cent decline in its consolidated net profit to ₹128 crore in the December quarter of the financial year 2025–26 (Q3FY26). During the same period last year, the bank’s profit stood at ₹1,402 crore. On a sequential basis, the bank swung to profit from a loss of ₹437 crore. 

IndusInd Bank’s net interest income (NII) declined 12.7 per cent year on year (Y-o-Y) to ₹4,562 crore from ₹5,228 crore in Q3FY25. Sequentially, revenue increased 3.5 per cent from ₹4,409 crore.

 

“During Q3FY26, the Bank continued focus on optimisation of its balance sheet by letting go unprofitable loans and deposits along with being cautious on microfinance disbursements. The operating performance was steady with pre-provision operating profit at ₹2,270 crore, growing 11 per cent sequentially,” said Rajiv Anand, MD and CEO of IndusInd Bank.

 

 

“Our asset quality trends have been stable in all core businesses except in microfinance wherein the industry is now showing early signs of recovery. Overall, the Bank has returned to profitability with a profit after tax of ₹128 crore. The balance sheet remains robust with healthy capital adequacy, excess liquidity and a reducing stressed asset pool. We are optimistic about the resilient domestic economy and aim to participate in the growth recovery in a calibrated manner,” he added.

 

In terms of asset quality, the lender said its gross non-performing assets (NPAs) were at 3.56 per cent of gross advances as of December 2025, as against 2.25 per cent in Q3FY25. Its net NPA ratio stood at 1.04 per cent as of December 2025, compared with 0.68 per cent during the same period last year.

 

Shares of IndusInd Bank closed at ₹893.1 apiece, down 1 per cent, on the BSE on Friday.