India · Delayed Price · Currency is INR IndusInd Bank Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY26 saw improved asset quality, strong retail deposit growth, and steady profitability, with PAT rising to INR 595 crore and capital ratios remaining robust. Focus remains on retail-led growth, digital transformation, and calibrated expansion amid macro uncertainties.
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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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Q2 FY26 saw a net loss of INR 437 crores due to accelerated microfinance provisions, while core operating profit remained stable. Asset quality improved QoQ, and the bank maintains strong capital and liquidity. Focus areas include vehicle finance, MSME, and retail asset growth, with ongoing leadership strengthening.
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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, with stable margins and strong capital ratios. Asset quality was maintained, though some stress was noted in cards and microfinance, and full-year growth and credit cost guidance were reaffirmed.