IndusInd Bank Q1 results: Beats profit, NII estimates; NPAs rise even as slippages moderate

IndusInd Bank on Monday reported a 72% year-on-year decline in net profit to ₹604 crore for the quarter ended June 2025, compared with ₹2,171 crore a year ago. Despite the decline, the profit figure came in ahead of CNBC-TV18’s poll estimate of ₹525 crore.

Net interest income (NII) also beat expectations, coming in at ₹4,640 crore versus the estimated ₹4,207 crore. However, on a yearly basis, NII declined 14.2% from ₹5,408 crore.

Net interest margin (NIM) improved sequentially to 3.46% from 2.25% in Q4, but was lower than 4.25% recorded in the year-ago quarter.

Fresh slippages moderated to ₹2,567 crore from ₹5,014 crore in Q4, with ₹2,322 crore coming from consumer loans and ₹245 crore from corporate accounts.

Despite the sequential improvement in slippages, asset quality indicators deteriorated. Gross non-performing assets (GNPAs) rose to 3.64% from 3.1% in the previous quarter, while net NPAs increased to 1.12% from 0.95%. The Provision Coverage Ratio (PCR) stood at 70%.

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During the quarter, the bank recorded recoveries of ₹239 crore and upgrades of ₹230 crore. Write-offs totalled ₹664 crore.

IndusInd Bank made specific provisions of ₹8,689 crore towards non-performing accounts and retained ₹70 crore in floating provisions as part of its buffer.

Advances stood at ₹3,33,694 crore, down 4% YoY and 3% QoQ, while deposits came in at ₹3,97,144 crore, also down 3% sequentially.

The bank's Capital to Risk-weighted Assets Ratio (CRAR) was 16.63%, while the Common Equity Tier 1 (CET 1) capital stood at 15.48% at the end of the quarter.

Ahead of the earnings announcement, shares of IndusInd Bank closed 2.93% lower at ₹799.60 on the NSE.