IndusInd Bank on Friday reported a consolidated net profit of ₹128 crore for the third quarter ended December 31, 2025, marking a return to the profit after a challenging second quarter. The Mumbai-based private lender had reported a net loss of ₹437 crore in the preceding quarter (Q2 FY26). However, on a year-on-year (YoY) basis, net profit saw a sharp 91% decline from the ₹1,402 crore reported in Q3 FY25.

Operational and financial performance

The bank’s net interest income (NII) stood at ₹4,562 crore, declining 13% YoY but showing a sequential recovery of 3% from ₹4,409 crore in Q2 FY26. The net interest margin (NIM) also saw sequential improvement, rising to 3.52% from 3.32% in the previous quarter.

Operating profit for the quarter grew 11% sequentially to ₹2,270 crore, driven by cost optimisation and stable margins. The bank’s employee costs included a one-time impact of ₹228.96 crore following the notification of new labour codes and draft rules in December 2025.

Asset quality and loan book

Asset quality showed signs of stabilising as gross non-performing assets (GNPA) improved slightly to 3.56% from 3.60% in the previous quarter. Net NPA remained steady at 1.04%. While the microfinance segment continued to face some pressure, management noted "early signs of recovery" in delinquency buckets for micro-loans.

The bank is currently undergoing a deliberate "re-calibration" of its balance sheet to prioritise higher-return assets. As a result, total deposits declined 4% YoY to ₹3,93,815 crore, while the total loan book shrank 13% YoY to ₹3,17,536 crore.

Leadership change

Sunil Mehta will conclude his tenure as part-time chairman on January 30, 2026. The board has approved the appointment of Arijit Basu as additional director and part-time chairman for a three-year term effective January 31, 2026.

Under its new three-year roadmap, titled 'P.A.C.E.', IndusInd Bank aims to continue its focus on building a granular retail franchise and enhancing digital capabilities through its 'INDIE' platform, which now counts over 2.7 million monthly active users.

The shares of IndusInd Bank ended 0.49% lower at ₹898 apiece on the national stock exchange on Friday. The banking stock has declined over 7.5% in the past one year, even as the broader Nifty Bank index has surged nearly 21% during the period.