IndusInd Bank shares remain volatile as Q2 advances, deposits slip

IndusInd Bank shares fell after it reported a sequential decline in both advances and deposits for the quarter ended September 30, 2025

Shares of IndusInd Bank remained volatile on Monday after the company reported a decline in advances and deposits in the September quarter of the current financial year. 

 

The IndusInd Bank stock fell as much as 1.78 per cent during the day to ₹734.1 per share, the biggest intraday fall since September 26 this year. The stock pared losses to trade 0.60 per cent higher at ₹751.8 apiece, compared to a 0.20 per cent advance in Nifty 50 as of 9:55 AM. 

 

Shares of the company rose for the fifth straight session and currently trade at 3.8 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 21 per cent this year, compared to a 5.3 per cent advance in the benchmark Nifty 50. IndusInd Bank has a total market capitalisation of ₹58,641.05 crore.   FOLLOW STOCK MARKET UPDATES LIVE

 

IndusInd Bank advances and deposits drop in Q2

IndusInd Bank reported a sequential decline in both advances and deposits for the quarter ended September 30, 2025, according to an exchange filing.

 

Net advances stood at ₹3,27,349 crore, down 2 per cent quarter-on-quarter (Q-o-Q) and 8 per cent year-on-year (Y-o-Y). Deposits fell 2 per cent sequentially and 5 per cent Y-o-Y to ₹3,89,803 crore.

 

The bank’s current account and savings account (CASA) ratio slipped to 30.8 per cent from 31.5 per cent in the previous quarter. Retail deposits and deposits from small business customers stood at ₹1,84,157 crore as of September 30, 2025, compared with ₹1,84,623 crore at the end of June 2025.  ALSO READ | HDFC Bank stock gets 'Buy' again from Nomura, target price tweaked; here's why

Analysts on IndusInd Bank Q2

The credit-deposit (CD) ratio for IndusInd Bank remained stable at 84 per cent in the second quarter of the financial year 2025–26, unchanged from the previous quarter. Overall business performance was weak, with both advances and deposits declining by 2 per cent, sequentially.

 

According to CLSA, the second quarter of FY26 is likely to be tepid for Indian banks, with loan growth expected at around 9-10 per cent amid a slowdown in both retail and corporate segments over the past two quarters. 

 

The brokerage noted that the full impact of the June repo rate cut will be reflected in the quarter, and while some of this will be offset by lower savings and term deposit rates, it still expects a net interest margin (NIM) compression of around 10 basis points for most banks.  ALSO READ | Dhanlaxmi Bank share price rises 6% after posting Q2 update; details

IndusInd Bank Q1 results 

IndusInd Bank reported a 72 per cent Y-o-Y decline in net profit to ₹604 crore in Q1FY26, as compared to ₹2,170.79 crore. The bank’s NII declined 14 per cent Y-o-Y during the April-June period to ₹4,640 crore due to a shrinking loan book. Sequentially, NII was up 52 per cent. Other income was down 12 per cent Y-o-Y to ₹2,157 crore.

 

The private sector lender’s NIM declined 79 basis points (bps) Y-o-Y to 3.46 per cent, but increased 121 bps sequentially.