IndusInd Bank , one of India's leading private sector banks, reported a net loss of ₹437.00 crores for the second quarter, a significant downturn from the ₹1,331.00 crores profit recorded in the same quarter last year. The bank attributed this decline primarily to cyclical pressures in the microfinance industry and prudent measures taken to strengthen its balance sheet.

Key Financial Highlights

Balance Sheet Consolidation and Microfinance Challenges

IndusInd Bank's Managing Director and CEO, Rajiv Anand, stated that the bank consolidated its balance sheet during the quarter by reducing wholesale deposits and exercising caution in microfinance disbursements. The bank's core pre-provision operating profit remained stable quarter-on-quarter at ₹1,940.00 crores.

Anand noted, "Our asset quality trends have been stable in all core businesses except in microfinance wherein industry is facing cyclical pressures. The Bank accelerated write-offs as well as increased provisions on microfinance as a prudent measure."

Strategic Measures and Future Outlook

Despite the quarterly loss, the bank's management remains optimistic about ongoing economic recovery. Anand emphasized, "We will work towards positioning the Bank to participate in the recovery as it unfolds. Our focus is on realizing the full potential of the Bank, by leveraging our capabilities, scaling our strengths, improving in areas where we can do better and unlocking new areas of value creation."

The bank highlighted its strong foundation, citing:

• Capital adequacy with CRAR of 17.10%
• Liquidity with average LCR of 132%
• Sequentially improved GNPA and NNPAs of 3.60% and 1.04% respectively

Digital Initiatives and Customer Base

IndusInd Bank continues to focus on digital transformation:

• Approximately 42 million customer base
• 3,116 branches/banking outlets and 3,054 ATMs
• Presence in 1.64 lakh villages across India

The bank's 'Digital 2.0' strategy aims to ensure multi-channel delivery and robust digital infrastructure, with 'INDIE' serving as a one-stop-shop for digital banking needs.

Conclusion

While the quarterly results reflect short-term challenges, particularly in the microfinance sector, IndusInd Bank's management remains committed to navigating these headwinds. The bank's focus on balance sheet consolidation, prudent provisioning, and digital transformation initiatives suggests a strategic approach to long-term stability and growth in a dynamic banking environment.

Indusind Bank , a major player in the Indian banking sector, is expected to report a significant drop in its quarterly profit for Q2, according to recent brokerage estimates. The bank is also addressing concerns about past accounting irregularities, as revealed in a recent clarification to the stock exchanges.

Projected Q2 Performance

IndusInd Bank's Q2 results are anticipated to show a substantial decline in profitability:

The bank faces multiple challenges, including:

• Weak treasury income
• Elevated provisions from microfinance and commercial vehicle segments
• Margin compression
• Sluggish loan growth
• Rising deposit costs

Key Areas of Concern

Operating Profitability

Expected to weaken due to lower treasury income and higher expenses.

Loan and Deposit Growth

Projected to remain tepid, with some brokerages anticipating declines.

Asset Quality

Continued stress in microfinance and retail portfolios is likely to keep credit costs elevated.

Management Commentary

Market participants will be keenly watching for commentary from the new CEO regarding:

1. The bank's growth strategy
2. Asset quality trends

Clarification on Past Accounting Irregularities

In a recent filing with the stock exchanges, IndusInd Bank addressed news reports about a "fresh probe" into accounting irregularities:

• The bank clarified that the ₹255 crore accounting discrepancy mentioned in recent news reports is not part of any new investigation.
• These findings were part of an investigation report submitted by an independent external agency to the bank in April 2025.
• The bank has already made necessary disclosures and reflected the impact of these accounting discrepancies in its audited financial statements for FY 2024-25, released on May 21, 2025.

IndusInd Bank emphasized its commitment to transparency, stating that it has complied with all disclosure obligations under SEBI regulations and will continue to do so.

As the bank navigates through these challenges, investors and analysts will be closely monitoring its Q2 results and future guidance to assess its financial health and growth prospects.