IndusInd Bank (IIB) reported a decent standalone net profit of ₹533 crore in the fourth quarter (Q4FY26) on the back of a healthy growth in net interest income as well as other income even as its deposits and advances declined.
India’s fifth largest private sector bank had reported a net loss of ₹2,236 crore in the year-ago quarter as it made a huge provision of ₹2,417 crore due to incorrect recording of cumulative interest income and fee income, correction in mis-classfication of certain microfinance loans, among others.
IIB’s standalone net profit in the reporting soared about 230 per cent against preceding quarter’s ₹161 crore.
Final dividend
The bank’s board recommended a final dividend of ₹1.50 per equity share of ₹10 each fully paid up (or 15 per cent) for FY26.
In FY26, IIB’s standalone net profit declined 65 per cent year-on-year (y-o-y) to ₹933 crore (₹2,643 crore in FY25).
To a specific question whether last year’s issues relating to internal derivative trades accounting are behind the bank, Rajiv Anand, MD & CEO, said: “The answer is yes. It means fully accounted for, disclosed to regulators, stock exchanges and other key stakeholders. So therefore, to that extent, that is behind us.
“I think the process of rebuilding is what we have been going through over the last six months or so. We are rebuilding trust with our key stakeholders — regulators, the board, investors, customers and even our employees.”
In the reporting quarter, the bank’s net interest income (difference between interest earned and interest expended) was up 43 per cent y-o-y at ₹4,371 crore (₹3,048 crore in the year-ago period).
Other income, including commission income from non-fund based banking activities, fees, earnings from foreign exchange and derivative transactions, profit and loss (including revaluation) from investments and recoveries from accounts previously written off, jumped 141 per cent y-o-y to ₹1,706 crore (₹709 crore).
Deposits & advances
As at March-end 2026, deposits and advances declined by 3 per cent y-o-y (to ₹4,00,174 crore) and 8 per cent y-o-y (to ₹3,15,871 crore), respectively.
“We have been guiding that FY27 is when we transition to a growth mindset. And we believe that this year should be when we start to grow broadly in line with market, both on the assets and on liabilities,” Anand said.
Net interest margin declined to 3.39 per cent in the reporting quarter from 3.52 per cent in the preceding quarter. However, the margin is much higher as compared to the year-ago quarter’s 2.25 per cent.
Provisions & contingencies declined 39 per cent y-o-y to ₹1,484 crore (₹2,417 crore).
Gross non-performing assets (NPAs) nudged up to 3.43 per cent of gross advances as at March-end 2026 against 3.13 per cent as at March-end 2024. Net NPAs too edged up a shade to 1 per cent of net advances against 0.95 per cent.
IIB’s shares closed at ₹848.30 apiece, down 1.41 per cent (or ₹12.15) over the previous close on BSE.
Published on April 24, 2026