IndusInd Bank is bracing for a challenging Q3FY26 performance, with leading brokerages projecting a dramatic decline in profitability. Four prominent research houses—Nuvama Institutional Equities, PL Capital, Systematix, and ElaraCapital—have released estimates indicating substantial year-on-year deterioration across key financial metrics. The bank is scheduled to announce its quarterly earnings on Friday, January 23.

Profit After Tax Projections

Brokerages are forecasting a severe contraction in PAT, with estimates ranging from a concerning 78% to 99% year-on-year decline. The projected figures reveal the extent of expected profitability pressure:

Net Interest Income Under Pressure

Net interest income is expected to face significant headwinds, with all brokerages projecting double-digit year-on-year declines. The NII estimates fall within a narrow band, indicating consensus on the challenging revenue environment:

Operating Metrics and Margin Compression

Pre-provision operating profit is expected to remain under significant pressure. ElaraCapital projects PPoP at ₹1,947.00 crore, representing declines of 46% year-on-year and 4% quarter-on-quarter. PL Capital estimates a slightly higher ₹2,118.00 crore, still reflecting substantial year-on-year contraction of 41%.

Net interest margins are facing considerable compression across estimates:

Balance Sheet and Asset Quality Outlook

Loan growth remains subdued, with both Nuvama and PL Capital projecting loans at ₹3,18,800.00 crore, representing a 13% year-on-year decline and 2% quarter-on-quarter contraction. Deposits are expected to show more resilience at ₹3,94,000.00 crore, declining 4% year-on-year but growing 1.1% sequentially.

Credit costs are anticipated to remain elevated, with PL Capital expecting a 73 basis points year-on-year increase to 2.63%, though showing sequential improvement of 58 basis points. Systematix projects provisions at ₹1,722.00 crore, potentially declining 1.2% year-on-year and 34% quarter-on-quarter, driven by expectations of lower microfinance institution slippages.

Revenue Mix and Other Income

Fee income is expected to remain broadly stable on a sequential basis. However, non-fee other income is projected to show improvement quarter-on-quarter, providing some offset to the challenging core banking metrics. The combination of margin pressure, elevated credit costs, and muted loan growth continues to weigh on the bank's overall performance trajectory.

IndusInd Bank Ltd. recorded a substantial block trade on the National Stock Exchange (NSE), highlighting significant institutional activity in the banking stock. The transaction represents a notable movement in one of India's prominent private sector banks.

Block Trade Details

The block trade executed on NSE involved substantial volume and value, demonstrating significant investor interest in the banking stock.

Market Significance

Block trades typically represent large institutional transactions that are executed outside the regular market to avoid significant price impact. These transactions often involve mutual funds, insurance companies, foreign institutional investors, or other large market participants.

The execution price of ₹944.05 per share reflects the prevailing market conditions at the time of the transaction. Such large-volume trades can provide insights into institutional sentiment and investment patterns in the banking sector.

Transaction Overview

The block trade mechanism allows for efficient execution of large orders while maintaining market stability. For IndusInd Bank, this transaction represents meaningful institutional engagement with the stock, indicating continued investor interest in the private banking space.