IndusInd Bank Reports Q1 Profit Growth, NII Sees Marginal Increase

IndusInd Bank Ltd. reported a 47% year-on-year increase in net profit for the first quarter of fiscal year 2026-27, supported by lower provisions and steady growth in core income. The private sector lender posted a net profit of Rs 1,003 crore during the quarter, compared with Rs 684 crore in the same period of the previous fiscal year, according to its exchange filing.

The bank’s provisions declined during the quarter, helping improve profitability. Total provisions stood at Rs 1,340 crore, down 9.7% from Rs 1,484 crore in the previous quarter. The reduction in provisioning expenses provided support to the bottom line as the bank continued efforts to strengthen asset quality.

IndusInd Bank’s net interest income (NII), which represents the difference between interest earned and interest paid, increased marginally by 1% to Rs 4,685 crore from Rs 4,640 crore in the previous fiscal year. The bank’s net interest margin (NIM) improved to 3.57% from 3.46%, reflecting stable performance in its lending operations.

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The lender also reported improvement in asset quality during the quarter. Gross non-performing assets (GNPA) declined to 3.25% from 3.43% on a quarter-on-quarter basis, while net non-performing assets (NNPA) reduced to 0.95% from 1%. The improvement indicated a decline in stressed assets and better management of loan quality.

Operating profit of the bank rose 1.2% to Rs 2,683 crore compared with Rs 2,652 crore in the corresponding period of the previous year. The bank’s quarterly highlights showed growth in profitability along with controlled asset risks, despite a modest rise in net interest income.

IndusInd Bank’s shares ended the trading session at Rs 1,069.30, gaining 0.55% compared with a decline in the broader NSE Nifty 50 index. The stock traded between Rs 1,055.65 and Rs 1,077.85 during the session and has gained 26.81% over the past year. The bank’s market capitalisation stood at around Rs 57,611 crore, with a price-to-earnings ratio of 11.44.

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