indusind bank has filed its Business Responsibility and Sustainability Report (BRSR) for FY2025-26 with the National Stock Exchange of India Ltd., BSE Ltd., and Luxembourg Stock Exchange. Filed on August 5, 2026, in compliance with Regulations 30 and 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the report details the bank’s standalone environmental, social, and governance (ESG) performance. The filing underscores the institution’s strategic commitment to sustainability, notably targeting carbon neutrality by FY2032, while providing granular data on emissions, workforce demographics, and regulatory adherence.

The report discloses that IndusInd Bank’s total energy consumption for FY2025-26 was 3,37,397 GJ, comprising 5,883 GJ from renewable sources and 3,31,514 GJ from non-renewable sources. Greenhouse gas emissions stood at 21,673 tCO2e for Scope 1 and 58,581 tCO2e for Scope 2, resulting in an intensity of 3.18 tCO2e per ₹ crore of turnover. Bureau Veritas India Pvt. Ltd. provided reasonable assurance for core BRSR disclosures and limited assurance for non-core metrics.

Workforce and Social Metrics

As of the end of FY2025-26, the bank employed 49,449 individuals, including 46,694 permanent employees and 2,755 non-permanent staff. Female representation accounted for 20.4% of the total workforce. The report highlights strong safety records, with zero fatalities, zero lost-time injury frequency rates (LTIFR), and zero recordable work-related injuries for both employees and workers. Additionally, 100% of permanent employees were covered by health and accident insurance.

Governance and Regulatory Compliance

Under Principle 1, the bank reported monetary penalties totaling ₹3,43,250 imposed by the Reserve Bank of India during the year. These penalties stemmed from irregularities observed during incognito visits and inspections of currency chests, specifically regarding soiled note remittance discrepancies. No appeals were preferred against these penalties. The bank maintains a zero-tolerance policy towards bribery and corruption, with no disciplinary actions taken against directors, key managerial personnel, or employees for such charges.

What the Numbers Show

The divergence between renewable energy adoption and total consumption highlights the scale of the bank’s decarbonization challenge. While renewable sources contributed 5,883 GJ, they represent less than 2% of the total 3,37,397 GJ energy mix. This indicates that achieving the stated carbon neutrality target by FY2032 will require significant acceleration in green power procurement and energy efficiency measures beyond current trajectories. Furthermore, the increase in Scope 1 emissions by approximately 6% year-on-year, attributed to branch expansion and mock drills, suggests operational growth is currently outpacing emission reduction efforts at the source level.

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.