This article first appeared on GuruFocus .
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Retail Deposit Mobilization:Net addition of INR6,800 crore during the quarter.
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Average Retail Deposits:Improved to 47.9% from 47.5% QoQ.
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Net Slippages:Down 37% QoQ; annualized slippages at 1.71% versus 2.65% QoQ.
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Pre-Provision Operating Profit:INR295 crore, steady QoQ.
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Provisions:INR1,482 crore, down 29% QoQ.
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Profit After Tax:INR595 crore versus INR128 crore QoQ.
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Capital Adequacy:CET1 ratio at 16.2%, CRAR at 17.48%.
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Vehicle Finance Loan Book:INR99,876 crore, growing 2% QoQ.
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Micro Loan Disbursements:INR5,400 crore, up 52% QoQ.
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Home Loan Book:INR6,510 crore, growing 45% YoY and 6% QoQ.
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Net Interest Income:INR4,371 crore.
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Net Interest Margin:3.39% compared to 3.35% QoQ.
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Non-Interest Income:INR1,714 crore, stable QoQ.
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Operating Expenses:INR3,790 crore, stable QoQ.
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Gross NPA:3.43%; Net NPA: 1%.
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Profit on Tax:INR594 crore versus INR128 crore QoQ.
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Release Date: April 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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IndusInd Bank Ltd ( BOM:532187 ) reported a significant improvement in asset quality, with net slippages down 37% quarter-on-quarter.
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The bank's capital adequacy remains strong, with a CET1 ratio of 16.2% and CRAR at 17.48%, providing a solid foundation for future growth.
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Retail deposit mobilization showed healthy traction, with a net addition of INR6,800 crore during the quarter, improving the share of average retail deposits.
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The vehicle finance business maintained healthy growth momentum, with a 2% quarter-on-quarter increase in the loan book and improved asset quality metrics.
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The bank is investing in AI and digital capabilities, with a dedicated AI center of excellence and improved digital account opening processes, enhancing customer experience.
Negative Points
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The ongoing conflict in West Asia has created heightened uncertainty, potentially impacting near-term growth and asset quality.
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Average advances dropped 2% sequentially, driven by declines in wholesale banking advances and the micro loan book.
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The personal loan book decreased by 2% quarter-on-quarter, indicating cautiousness in the unsecured segments.
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Despite improvements, the net NPA ratio remains above the bank's earlier guidance, with a gradual reduction expected.
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Retail deposit growth, while stable, has not shown material growth, posing a challenge for future loan growth ambitions.
Q & A Highlights
Q: There was a reduction in the banking outlet footprint by about 230 sequentially. What's happening there? Also, what kind of loan growth should one expect for FY27? A: The reduction in outlets is due to optimizing and rationalizing some centers that became unviable. For FY27, we aim to grow broadly in line with the market, as the foundations are now in place to support this growth. - Rajiv Anand, CEO
Q: Can you share the absolute quantum of AFS reserves as of March '26, and clarify if there was any impact from RBI's FX NOP rule? A: The AFS reserve was negative INR50 crore. Our AFS book is relatively small. The impact of the RBI requirements was not material, only in tens of crore. - Viral Damania, CFO
Q: In terms of ROE, how should we look at the step-up getting into FY27 and FY28? A: We aim to improve ROE through equal contributions from credit losses and operating profit. This includes some improvement on NIM, more on fees, and expense optimization as asset size grows. - Rajiv Anand, CEO
Q: What is your internal assessment of market growth, and how do you see the mix of wholesale, retail, and SME moving? A: Industry growth should be around 13-14%. We are focusing on more granular businesses within wholesale and traditional retail asset businesses. The mix will shift towards mid-corporate and SME, while maintaining a 60-40 retail to wholesale ratio. - Rajiv Anand, CEO
Q: Can you provide details on the large corporate degrowth and average CASA balances growth? A: We are dialing up mid-market and commercial banking, with some degrowth in very large corporates. Average CASA growth was stable, with a focus on retail book growth. - Ganesh Sankaran, Head Wholesale Banking and Viral Damania, CFO
Q: What would be the driver of credit cost improvement apart from MFI? A: Improvement will come across all segments, including consumer and vehicle finance, not just microfinance. The asset book growth and reduced slippages will contribute to lower credit costs. - Viral Damania, CFO
Q: How do you see system deposit growth panning out, and could it be a constraint on loan growth? A: Deposit growth will be a constraint to credit growth. We expect slightly lower levels of credit growth due to the current macroeconomic environment, but it's a wait-and-watch situation. - Rajiv Anand, CEO
Q: What is your plan for the merchant loan book, and do you see it becoming a sizable part of the loan book? A: We are investing in the merchant loan book, aiming for significant growth. The plan is to expand the rural business with more products, making microfinance a smaller proportion of the overall portfolio. - Rajiv Anand, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
