IndusInd Bank Posts ₹594 Crore Profit in Q4, Marks Significant Turnaround from Previous Year

IndusInd Bank Reports Sharp Turnaround in Q4 FY26, Posts ₹594.2 Crore Net Profit

IndusInd Bank, a Hinduja Group-promoted new-age private sector lender and the fifth-largest private bank in India, announced its financial performance for the March-ended quarter and the full fiscal year FY26 today, post market hours.

The bank reported a net profit of ₹594.2 crore, beating analysts’ estimates and marking a sharp turnaround from a net loss of ₹2,329 crore in the same period last year. The improvement was driven by lower provisions and improving asset quality.

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The net interest income (NII), the difference between interest earned from lending and interest paid to depositors, surged 43.4% year-on-year to ₹4,372 crore, also coming in above estimates, while the net interest margin improved to 3.39% from 2.25%. Pre-provision operating profit (PPOP) stood at ₹2,295 crore in Q4 FY26, compared to a loss of ₹491 crore in the corresponding quarter of the previous year, as per company's earnings filing.

Analysts said stress in segments such as microfinance, where IndusInd Bank grappled with high bad loans, would ease during the quarter, as the bank tightened lending, helping limit new bad loans and improving its asset quality. This trend was reflected in the March-ended quarter, with the bank reporting a notable improvement in asset quality.

Gross slippages fell sharply to ₹1,825 crore in Q4 FY26 from ₹2,560 crore in Q3 FY26 and ₹5,014 crore in Q4 FY25. Similarly, net slippages declined to ₹1,359 crore, compared to ₹2,159 crore in the previous quarter and ₹4,526 crore in the year-ago period. Thus, the lender’s provisions and contingencies dropped to ₹1,482 crore from ₹2,522 crore in the same period last year.

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Consequently, the gross non-performing assets (GNPA) and net non-performing assets (NNPA) ratios declined by 13 basis points and 4 basis points year-on-year, to 3.43% and 1.0%, respectively.

Meanwhile, the bank’s deposits and advances remained under strain. Deposits stood at ₹3,99,931 crore as of March 31, 2026, compared to ₹4,10,862 crore in the same period last year. Similarly, advances were at ₹3,15,871 crore, down from ₹3,45,019 crore as on March 31, 2025.

Along with the results, the company’s board also announced a final dividend of ₹1.50 per share for FY26, subject to shareholder approval. The company has fixed Friday, June 26, 2026, as the record date to identify eligible shareholders for the dividend payment.