IndusInd Bank shares rise to highest in 9 months post Q3 business update

IndusInd Bank shares rose to the highest level in over nine months even after it reported a drop in third-quarter advances and deposits

Shares of IndusInd Bank rose over 2 per cent on Tuesday, to the highest level in over nine months, even after it reported a drop in third-quarter advances and deposits. 

 

The lender's stock rose as much as 2.5 per cent during the day to ₹922.5 per share, the biggest intraday gain since January 1 this year. The IndusInd Bank stock pared gains to trade 2 per cent lower at ₹918 apiece, compared to a 0.16 per cent decline in Nifty 50 as of 11:11 AM.

 

Shares of the company rose to the highest level since March last year and currently trade at 2.7 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 5.2 per cent in the last 12 months, compared to an 11 per cent advance in the benchmark Nifty 50. IndusInd Bank has a total market capitalisation of ₹71,787.96 crore.  CATCH STOCK MARKET UPDATES TODAY LIVE

 

IndusInd Bank Q3 business update

IndusInd Bank's net advances stood at ₹3,18,844 crore as of December 31, 2025, marking a decline of 13.1 per cent year-on-year (Y-o-Y) and 2.2 per cent sequentially, according to the bank's exchange filing.

 

Total deposits were ₹3,94,022 crore at the end of the December quarter, down 3.8 per cent from a year earlier but up 1.1 per cent quarter on quarter (Q-o-Q). The bank’s current account savings account (CASA) ratio moderated to 30.3 per cent as of December 31, 2025, compared with 30.7 per cent at the end of September 2025 and 34.9 per cent a year ago.

 

Retail deposits and deposits from small business customers stood at ₹1,84,550 crore as of December 31, 2025, broadly flat compared with ₹1,84,144 crore at the end of September 2025, but lower than ₹1,88,731 crore in the year-ago period.  ALSO READ | Swiggy slips 5%, falls below QIP price; why new age stock under pressure?

IndusInd Bank Q2 earnings recap

IndusInd Bank reported a sequential decline in both advances and deposits for the quarter ended September 30, 2025. Net advances stood at ₹3,27,349 crore, down 2 per cent Q-o-Q and 8 per cent Y-o-Y. Deposits fell 2 per cent sequentially and 5 per cent Y-o-Y to ₹3,89,803 crore.

 

The bank’s 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.

 

Given the ongoing stress in asset quality and earnings volatility, analysts at JM Financial Institutional Securities expect average ROE/ROE to remain subdued at 0.7 per cent/6 per cent over FY26-28E. The bank’s sustained improvement in asset quality and operating metrics would be key triggers for re-rating, it said earlier.