India · Delayed Price · Currency is INR IndusInd Bank Earnings Call Transcripts
Fiscal Year 2027
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Q1 FY27 saw a return to growth, improved profitability, and stronger asset quality, with PPOP up 21% quarter-on-quarter and PAT at INR 1,037 crore. Retail deposit share reached a record 49.5%, while capital and liquidity positions remain robust.
Fiscal Year 2026
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Q4 saw steady operating profit, sharply lower provisions, and a strong rebound in net profit. Asset quality improved across segments, with retail and SME driving growth. Capital and liquidity remain robust, while digital and AI initiatives are accelerating.
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Q3 FY26 saw improved operating profit and a return to profitability, with strong vehicle finance growth and ongoing stress in microfinance. Leadership changes and digital initiatives support a strategy focused on balance sheet strength and industry-aligned growth by FY27.
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Quarterly loss driven by accelerated microfinance provisions, but core operating profit and capital ratios remain strong. Asset quality outside microfinance improved, and management expects stabilization and growth as portfolio diversification and digital initiatives progress.
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Profitability returned with INR 604 crore PAT in Q1 FY25-26, supported by stable NIMs and strong capital ratios. Microfinance and corporate segments saw book contraction, while digital traction and retail deposit resilience continued. Elevated slippages in microfinance are expected to normalize in 3-6 months.
Fiscal Year 2025
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Material accounting and governance lapses led to significant one-off adjustments, but all issues have been fully addressed in FY25 results. The bank remains well-capitalized, with strong liquidity and a clean slate for FY26, focusing on growth in retail, MSME, and digital banking.
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Retail deposit and loan growth remained strong, but overall deposits declined due to a strategic reduction in wholesale funding. Asset quality was stable except for elevated stress in microfinance, while capital adequacy and profitability improved sequentially.
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Q2 FY25 saw stable economic activity and strong deposit growth, but profitability was impacted by slower microfinance disbursements, higher credit costs, and a prudent increase in contingent provisions. Asset quality remained stable, and management expects recovery in H2.
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Loan and deposit growth remained robust despite a seasonally weak quarter and external disruptions. Asset quality and capital ratios stayed healthy, with digital and affluent banking segments showing strong momentum. Full-year growth and credit cost guidance were reaffirmed.