IndusInd Bank Ltd on Friday reported a return to profitability in the March 2026 quarter (Q4 FY26), posting a net profit of Rs 594 crore compared with a net loss of Rs 2,329 crore in the corresponding quarter last year, according to the bank's exchange filing.

The private lender's net interest income (NII) rose to Rs 4,371 crore in Q4 FY26 from Rs 3,048 crore in Q4 FY25. Fee and other income also saw a sharp increase to Rs 1,714 crore as against Rs 709 crore in the year-ago period. However, core fee income declined to Rs 1,524 crore from Rs 2,304 crore in the corresponding quarter last year.

Net revenue for the quarter stood at Rs 6,085 crore, up from Rs 3,757 crore in Q4 FY25. Operating expenses came in lower at Rs 3,790 crore compared with Rs 4,248 crore in the same period a year ago.

On the margins front, yield on assets improved to 8.53 per cent for the quarter ended March 31, 2026, from 7.85 per cent a year earlier. Cost of funds eased to 5.14 per cent from 5.60 per cent in the corresponding period.

As per the bank's release, the balance sheet size stood at Rs 5,43,394 crore as on March 31, 2026, compared to Rs 5,54,107 crore a year ago. Advances declined to Rs 3,15,871 crore from Rs 3,45,019 crore over the same period.

Asset quality saw a marginal deterioration, with gross non-performing assets (NPAs) rising to 3.43 per cent of gross advances as on March 31, 2026, from 3.13 per cent a year ago. Net NPAs stood at 1 per cent compared to 0.95 per cent in the year-ago period.

The bank's board recommended a final dividend of Rs 1.50 per equity share of face value Rs 10 each (15 per cent) for FY26, subject to shareholder approval at the upcoming annual general meeting. The record date to determine eligible shareholders has been fixed as June 26, 2026.

The results were announced after market hours. Earlier in the day, shares of IndusInd Bank settled 1.41 per cent lower at Rs 848.30.