IndusInd Bank reported a standalone net profit of ₹933.33 crore for the financial year ended March 31, 2026, a decline of 64.69% from ₹2,642.90 crore in FY2025. Elevated credit costs—driven primarily by stress in the microfinance portfolio—weighed on profitability, even as the Bank maintained disciplined cost management and stable core income streams. The Bank's consolidated profit after tax stood at ₹889.34 crore, compared to ₹2,575.54 crore in the previous year.

Financial Performance: FY2026 vs FY2025

The following table summarises the Bank's standalone operating performance for FY2026 against FY2025:

Key Balance Sheet Parameters

The Bank's balance sheet reflected deliberate recalibration, with the loan book declining 8.45% year-on-year as the Bank ran down the microfinance portfolio and tightened underwriting standards.

Capital Adequacy and Asset Quality

The Bank maintained robust capital and liquidity buffers throughout the year. The Capital Adequacy Ratio (CRAR) improved to 17.48% from 16.24% in the previous year, with Common Equity Tier 1 (CET1) at 16.20%. The Liquidity Coverage Ratio (LCR) stood at 118%, comfortably above regulatory requirements. The Provision Coverage Ratio (PCR) was 71%.

Asset quality trends remained broadly stable across key portfolios, with stress concentrated in the microfinance segment. Gross NPA stood at 3.43% of gross advances and net NPA at 1.00% of net advances as of March 31, 2026.

Business Highlights

The Bank's loan mix stood at 52:14:34 (Retail:SME:Wholesale) as of March 31, 2026. Key business developments during the year included:

• Vehicle Finance: Loan book reached ₹99,876 crore; nearly 300 vehicle branches integrated with branch banking network.
• SME: Loan book at ₹44,347 crore, constituting 14% of the overall loan mix.
• Microfinance (BFIL): Micro loan book at ₹16,439 crore as of March 31, 2026, reflecting a 45% decline from ₹29,960 crore in the previous year, driven by industry-wide slowdown and tightened underwriting.
• Home Loans: Portfolio grew 45% year-on-year to ₹6,510 crore.
• Merchant Loan Book (BSS): ₹8,042 crore, up 11% year-on-year, serving over 5.7 Lakh active borrowers.
• Wholesale Banking: Advances stood at ₹1,08,525 crore as of March 31, 2026.
• INDIE App: 4.8 million+ cumulative registrations, 2.8 million+ monthly active users, and a 58% Monthly Active User (MAU) rate.
• Total Deposits: ₹4,00,174 crore; retail deposits improved to 47.9% of total deposits (from 46.6% in the previous year).
• Total Customers: 42 million.
• Total Touchpoints: 9,535, comprising 3,136 branches and banking outlets, 3,427 BFIL branches, and 2,870 ATMs.

Dividend and AGM

The Board of Directors, at its meeting held on April 24, 2026, recommended a dividend of ₹1.50 per equity share of ₹10 each (15% of face value) for FY2025-26. This proposal is subject to shareholder approval at the 32nd Annual General Meeting scheduled for Thursday, August 27, 2026, through Video Conference/Other Audio Visual Means. The record date for dividend payment was June 26, 2026.

Strategic Roadmap: P.A.C.E.

The Bank articulated a three-year strategic roadmap—P.A.C.E.—to guide its medium-term direction:

• Protect the Endowments: Strengthen core franchises in vehicle finance, rural banking, and corporate banking.
• Accelerate Key Priorities: Build a granular deposit base and scale SME and mid-market businesses.
• Customer Centricity: Deliver a unified 'One IndusInd' experience through digital innovation.
• Execution Excellence: Drive accountability, improve operational efficiency, and maintain disciplined cost management.

The first year of the roadmap is centred on strengthening the Bank's foundations and achieving an exit Return on Assets (RoA) of 1% in FY2027. Rajiv Anand assumed charge as Managing Director & CEO with effect from August 25, 2025. The Bank's sustainable finance portfolio accounted for 47.43% of total advances during FY2025-26, and CSR initiatives positively impacted nearly 25 Lakh lives during the year.

IndusInd Bank has announced that the Reserve Bank of India (RBI) has granted approval for the appointment of Mr. Ganesh Sankaran and Mr. Jagdeep Mallareddy as Executive Directors (Whole-time Directors) of the Bank. The Bank's Board of Directors noted the RBI's approval on August 4, 2026, with the appointments effective from the same date. This development follows the Board's earlier decision on April 24, 2026, when both individuals were approved as Additional Directors in the category of Executive Directors, pending RBI clearance.

Appointment Details

Both appointments are for a period of three years. The key terms of their appointments are summarised below:

Prior to this formal appointment, both individuals had been redesignated as Executive Director – Designate with effect from April 24, 2026, until their appointments as Whole-time Directors took effect.

Profile: Mr. Ganesh Sankaran

Mr. Ganesh Sankaran (DIN: 07580955) is a seasoned banking leader with over three decades of experience across Wholesale, Retail Credit, and SME banking. He has held senior leadership positions at leading private sector banks, playing a pivotal role in building businesses, driving large-scale business transformations, and delivering consistent performance. His career reflects depth in relationship management, credit and risk, product expertise, and board-level exposure.

Prior to joining IndusInd Bank, his major banking career spans across Axis Bank, Federal Bank, and HDFC Bank. Mr. Ganesh Sankaran has also served on the boards of Axis Capital, Equirus Capital, and Fedbank Financial Services, and acted as Executive Director and Board Member at Federal Bank. At IndusInd Bank, he serves as Head of the Wholesale Banking Group.

Profile: Mr. Jagdeep Mallareddy

Mr. Jagdeep Mallareddy (DIN: 07492539) brings over three decades of experience in the financial services sector, with exposure across retail banking, lending, credit, operations, and risk management. He holds a Master of Business Administration from Andhra University and a Bachelor of Commerce (Honours) from Osmania University.

Prior to joining IndusInd Bank, he was associated with Piramal Finance Limited as Chief Executive Officer – Retail Lending. Earlier, he held senior leadership roles at Axis Bank Limited, including Head – Retail Lending. His previous experience also includes associations with:

• ICICI Prudential Life Insurance Company Limited
• HDFC Bank Limited
• Kotak Mahindra Prime Limited
• Cholamandalam Investment and Finance Company Limited
• Bajaj Auto Finance Limited

At IndusInd Bank, he serves as Head of Consumer Banking.

Regulatory Compliance

The Bank has confirmed that neither Mr. Ganesh Sankaran nor Mr. Jagdeep Mallareddy is debarred from holding the office of a Director by virtue of any order passed by SEBI or any other such authority. There is no inter-se relationship between the two Directors. The disclosure has been made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with the SEBI Master Circular dated January 30, 2026.