The bank’s net interest margin (NIM) was also reported at 3.32% for Q2 FY26, as compared to 4.08% for Q2 FY25.
As per the bank’s press release, the fee and other income for the quarter stood at Rs 1,651 crore, compared to Rs 2,185 crore in Q2FY25. The bank’s yield on assets stood at 8.75% for the quarter, lower than 9.58% recorded in the year-ago period, while the cost of funds was 5.43% as against 5.54% in the corresponding quarter last year.
Operating expenses for Q2FY26 were reported at Rs 4,013 crore, slightly higher than Rs 3,932 crore in Q2FY25. Total expenditure, including interest and operating expenses, stood at Rs 11,212 crore compared to Rs 11,271 crore in the corresponding period of the previous year. The bank’s pre-provision operating profit (PPOP) declined to Rs 2,047 crore in Q2FY26 from Rs 3,600 crore in Q2FY25.
IndusInd Bank’s balance sheet stood at Rs 5,27,490 crore as of September 30, 2025, compared to Rs 5,43,407 crore a year earlier. Deposits were Rs 3,89,600 crore, down from Rs 4,12,397 crore in the previous year.
CASA deposits amounted to Rs 1,19,771 crore, with current account deposits at Rs 31,916 crore and savings account deposits at Rs 87,854 crore, forming 31% of total deposits.Advances as of the end of Q2FY26 were Rs 3,25,881 crore, lower than Rs 3,57,159 crore in the year-ago period.Asset qualityThe gross NPA ratio stood at 3.60% of gross advances as of September 30, 2025, slightly lower than 3.64% as of June 30, 2025, while the net NPA was at 1.04%, improving from 1.12% in the previous quarter.
The Provision Coverage Ratio improved to 72%. Provisions and contingencies rose to Rs 2,631 crore in Q2FY26 from Rs 1,820 crore in Q2FY25.
Capital adequacyThe bank’s Total Capital Adequacy Ratio, under Basel III norms and excluding half-yearly profits, stood at 17.10% as of September 30, 2025, up from 16.51% a year earlier. Tier 1 CRAR was 15.88%, compared to 15.21% in the year-ago period. Risk-weighted assets stood at Rs 3,98,256 crore, down from Rs 4,20,519 crore last year.
“During Q2FY26, the Bank consolidated its balance sheet by letting go wholesale deposits and being cautious on microfinance disbursements. Nevertheless, our core pre-provision operating profit at Rs. 1,940 crores remained stable QoQ. Our asset quality trends have been stable in all core businesses except in microfinance wherein industry is facing cyclical pressures. The Bank accelerated write-offs as well as increased provisions on microfinance as a prudent measure. While this has resulted in the Bank showing a loss in Q2, we believe this strengthens the balance sheet and fast-tracks normalisation of underlying profitability,” said Rajiv Anand, the MD and CEO of IndusInd Bank, while commenting on the bank’s Q2 results.
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