IndusInd Bank on April 24 announced a profit of Rs 533 crore for the quarter ended March 31, 2026 as against a loss of Rs 2,236 crore in the year-ago period, helped by a drop in provisions for potential bad loans and a sequential improvement in asset quality.


The country's fifth-largest private lender by market capitalisation beat analysts' expectation of Rs 389-crore net profit, per data compiled by LSEG. In the year-ago quarter, the bank had reported its biggest-ever quarterly loss due to years of mis-accounting of internal derivative trades.

The lender declared a final dividend of Rs 1.5 per share for FY26. The record date for determining the eligibility of members entitled to receive the dividend shall be Friday, June 26, 2026, the bank said.

IndusInd's provisions and contingencies declined 38.6% year-on-year and 29% from the previous quarter to Rs 1,484 crore.

Asset quality improved, with gross bad loans as a percentage of total loans dropping to 3.43% at the end of March from 3.56% three months earlier.

The bank came under scrutiny last year after disclosing a nearly Rs 2,000-crore hit in the year ended March 2025 due to mis-accounting of internal derivative trades, which raised concerns over governance and led to the resignations of former CEO Sumant Kathpalia and deputy chief Arun Khurana.

"We are seeing improved growth momentum across businesses, supported by focused execution and strengthening fundamentals. In our microfinance portfolio, lower slippages during the quarter have contributed to better asset quality," chief executive officer Rajiv Anand said in a statement.

The bank's loan and deposit growth have remained under pressure over the last year. During the fourth quarter, IndusInd Bank's loans declined 8.7% year-on-year, the fourth straight decline, while deposits fell 2.6%.

Net interest income, the difference between interest earned on loans and paid on deposits, climbed 43% year-on-year to Rs 4,371 crore.