India's IndusInd Bank beats quarterly profit view on lower provisions (updated)

Indusind Bank

24/04/2026 12:22

Adds details on bad loans in paragraphs 5 and 6, shares in paragraph 13

April 24 (Reuters) - India's IndusInd Bank INBK.NS reported a bigger-than-expected fourth-quarter profit on Friday, as the pace of additions to bad loans slowed, with provisions also dropping.

The private lender posted a profit of 5.33 billion rupees ($56.55 million) for the quarter ended March 31, beating analysts' expectation of 3.89 billion rupees, per LSEG- compiled data.

In the year-ago quarter, the bank had reported its biggest-ever quarterly loss due to years of misaccounting of internal derivative trades.

Analysts said stress in segments such as microfinance, where IndusInd Bank grappled with high bad loans, would ease during the quarter, as the bank tightened lending, helping limit new bad loans and improving its asset quality.

Its gross slippages, or additions to bad loans, dropped 64% on-year and 29% sequentially to 18.25 billion rupees.

Slippages and recoveries across customer segments improved, the bank said in a statement.

IndusInd's provisions and contingencies declined 38.6% year-on-year and 29% from the previous quarter to 14.84 billion rupees.

Asset quality improved, with gross bad loans as a percentage of total loans dropping to 3.43% at the end of March from 3.56% three months earlier.

The bank came under scrutiny last year after disclosing a $230 million hit in the year ended March 2025 due to misaccounting of internal derivative trades, which raised concerns over governance and led to the resignations of former CEO Sumant Kathpalia and deputy chief Arun Khurana.

Veteran banker Rajiv Anand, who was appointed CEO in August, said in October that the lender planned to grow in segments that typically face less stress.

The bank's loan and deposit growth have remained under pressure over the last year.  During the fourth quarter, IndusInd Bank's loans declined 8% year-on-year, the fourth straight decline, while deposits fell 3%.

Net interest income, the difference between interest earned on loans and paid on deposits, climbed 43% year-on-year to 43.71 billion rupees.

Shares of the company ended 1.4% lower ahead of results. They are down 1.9% so far in 2026 compared to a 5.9% drop in the Nifty Bank Index .NSEBANK

($1 = 94.2475 Indian rupees)

 (Reporting by Nishit Navin; Editing by Harikrishnan Nair and Mrigank Dhaniwala)

 ((Nishit.Navin@thomsonreuters.com;))