IndusInd Bank Beats Q4 Profit Estimates on Lower Bad Loans

IndusInd Bank reported a stronger-than-expected fourth-quarter profit, supported by a slowdown in new bad loans and reduced provisions. The bank posted a profit of 5.33 billion rupees for the quarter ended March 31, surpassing analysts’ estimates of 3.89 billion rupees. This marks a recovery from the year-ago period, when the lender recorded a significant loss due to accounting issues.

Improvement in asset quality played a key role, as gross slippages—new additions to bad loans—fell sharply by 64% year-on-year to 18.25 billion rupees. Provisions and contingencies also declined nearly 39% annually, reflecting better control over stressed assets. The bank noted improved recoveries across segments, with gross non-performing assets easing to 3.43% from 3.56% in the previous quarter.

Despite the positive earnings, business growth remained under pressure. Loans declined 8% year-on-year, marking the fourth consecutive quarterly drop, while deposits fell 3%. However, net interest income surged 43% to 43.71 billion rupees. The lender continues to rebuild after governance concerns last year, with new leadership focusing on more stable lending segments to sustain long-term growth.

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