IndusInd Bank Q4 FY26: Profit Returns, ₹1.5 Dividend

What IndusInd Bank reported for the March 2026 quarter

IndusInd Bank said it returned to profit in the March 2026 quarter (Q4 FY26) after a steep loss in the year-ago period, according to its exchange filings and disclosures dated April 24. The bank reported a consolidated profit after tax (PAT) of ₹594 crore for Q4 FY26, compared with a consolidated net loss of ₹2,329 crore in Q4 FY25. Separately, reports based on the bank’s standalone results put Q4 FY26 profit at about ₹533 crore (₹532.71 crore in the audited standalone numbers) versus a standalone loss of about ₹2,236 crore (₹2,235.99 crore) a year earlier. The results were announced after market hours.

The return to profitability matters because Q4 FY25 included the bank’s biggest-ever quarterly loss, linked in reporting to years of mis-accounting of internal derivative trades. Against that backdrop, the March 2026 quarter was closely watched for signs of stabilisation in earnings, asset quality, and provisioning.

Net interest income rose 43% year-on-year

The bank’s net interest income (NII) increased sharply, rising to ₹4,371 crore in Q4 FY26 from ₹3,048 crore in Q4 FY25. Another disclosure pegged NII at ₹4,371.48 crore versus ₹3,048.34 crore a year earlier, consistent with the 43% year-on-year growth cited in reports. NII is a key indicator of core banking performance because it captures the spread between interest earned on loans and interest paid on deposits.

Net revenue for the quarter was reported at ₹6,085 crore, up from ₹3,757 crore in Q4 FY25. On margins and pricing, yield on assets improved to 8.53% for the quarter ended March 31, 2026, from 7.85% a year earlier. Cost of funds eased to 5.14% from 5.60% over the same period.

Fee income rose, but core fee income fell

Fee and other income rose to ₹1,714 crore in Q4 FY26 from ₹709 crore in Q4 FY25. However, core fee income declined to ₹1,524 crore from ₹2,304 crore in the corresponding quarter last year. The divergence suggests that while reported fee and other income improved, the mix changed, with core fee income lower year-on-year.

Costs fell and operating performance improved

Operating expenses declined to ₹3,790 crore in Q4 FY26 from ₹4,248 crore in Q4 FY25. Pre-provision operating profit (PPOP) was reported at ₹2,295 crore for Q4 FY26, compared with a loss of ₹491 crore in Q4 FY25. A separate standalone disclosure cited PPOP at ₹2,215 crore versus a loss of ₹472 crore a year earlier, while also noting a marginal sequential decline from ₹2,306 crore in Q3.

Sequentially, profit movement differed across disclosures. One report said standalone profit fell 67% quarter-on-quarter from ₹1,612 crore in the December quarter, while another noted a quarter-on-quarter rise from ₹127.98 crore in Q3 FY26 for the audited standalone figure.

Provisions fell; asset quality improved sequentially

IndusInd Bank’s provisions and contingencies declined to ₹1,484 crore, down 38.6% year-on-year and 29% from the previous quarter, according to reporting based on the bank’s disclosures. The fall in provisions was cited as a key driver behind the return to profitability.

On asset quality, gross non-performing assets (GNPA) were 3.43% of gross advances as on March 31, 2026, compared with 3.13% a year ago, indicating a marginal year-on-year deterioration. But sequentially, asset quality improved, with GNPA falling from 3.56% three months earlier. Net NPA stood at 1.00% versus 0.95% a year ago, and improved from 1.04% in Q3 FY26.

Balance sheet size, deposits, and advances

The bank reported a balance sheet size of ₹5,43,394 crore as on March 31, 2026, compared with ₹5,54,107 crore a year earlier. Deposits were ₹3,99,931 crore as on March 31, 2026 versus ₹4,10,862 crore as on March 31, 2025. CASA deposits stood at ₹1,24,933 crore, including current account deposits of ₹35,034 crore and savings account deposits of ₹89,899 crore. CASA deposits comprised 31.24% of total deposits as at March 31, 2026.

Retail deposits (as per LCR) were ₹1,82,896 crore as on March 31, 2026 versus ₹1,86,503 crore a year earlier. Advances were ₹3,15,871 crore as on March 31, 2026, compared with ₹3,45,019 crore as on March 31, 2025. Another disclosure said loans declined 8.7% year-on-year and deposits fell 2.6%.

Capital adequacy and liquidity indicators

The bank’s total capital adequacy ratio (Basel III) was 17.48% as on March 31, 2026, compared with 16.24% a year earlier. Tier 1 CRAR was 16.20% versus 15.10% a year ago. Risk-weighted assets were ₹3,93,543 crore versus ₹4,19,535 crore a year earlier.

The provision coverage ratio (PCR) was 71.45% as of March 31, 2026, compared with 71.50% in Q3 FY26. The bank also reported an average LCR of 118% for Q4 FY26 versus 122% for Q3 FY26.

Dividend of ₹1.50 per share; record date June 26, 2026

The board recommended a final dividend of ₹1.50 per equity share (face value ₹10 each, 15%) for FY26, subject to shareholder approval at the upcoming annual general meeting. The record date for determining eligible shareholders was fixed as June 26, 2026.

Key numbers at a glance

Management commentary and board updates

MD and CEO Rajiv Anand said the bank was seeing improved growth momentum across businesses, supported by focused execution and strengthening fundamentals. He added that in the microfinance portfolio, lower slippages during the quarter contributed to better asset quality.

The bank also proposed the appointment of Ganesh Sankaran (Head Wholesale Banking) and Jagdeep Mallareddy (Head Consumer Banking) as Executive Directors (designate) on the board, subject to RBI and shareholder approvals. It also named Sunil Kumar Singh as Chief Compliance Officer, as per the exchange filing.

Market reaction and what investors tracked

Ahead of the results, IndusInd Bank shares settled 1.41% lower at ₹848.30. The market focus remained on the quality of earnings after last year’s exceptional loss and on whether the sequential improvement in GNPA and NNPA would sustain alongside the reported reduction in provisions.

Conclusion

IndusInd Bank’s March 2026 quarter marked a return to profitability, driven by higher NII, lower operating expenses, and a sharp decline in provisions, alongside a sequential improvement in asset-quality ratios. The next key dates include the June 26, 2026 record date for the ₹1.50 final dividend and shareholder approval at the AGM.