IndusInd Bank , one of India's leading private sector banks, has reported a sequential decline in both net advances and deposits for the quarter ended September 30, according to the bank's latest financial disclosure.

Key Financial Metrics

The bank witnessed a 2% quarter-on-quarter (QoQ) decline in both net advances and deposits. Net advances decreased to ₹3.27 lakh crore from ₹3.33 lakh crore in the previous quarter. Similarly, deposits fell to ₹3.89 lakh crore from ₹3.97 lakh crore.

CASA Ratio and Retail Deposits

The Current Account Savings Account (CASA) ratio, a key metric indicating the proportion of low-cost deposits, decreased to 30.8% from 31.5% in the prior quarter. This decline suggests a slight shift in the bank's deposit mix.

Retail deposits and deposits from small business customers stood at ₹1,84,157 crore as of September 30, marginally lower than the ₹1,84,623 crore reported on June 30.

Management Changes

In a significant management change, IndusInd Bank appointed Viral Damania as its new Chief Financial Officer (CFO), effective September 22. Damania brings over 27 years of banking experience to the role, having previously served as CFO at Bank of America India. This appointment follows the resignation of the previous CFO in January and subsequent accounting issues identified in the bank's derivatives portfolio and microfinance business.

Santosh Kumar, who had been serving as interim CFO, will return to his position as deputy CFO.

Strategic Implications

This CFO appointment marks the second senior appointment under Managing Director and CEO Rajiv Anand, who took charge on August 25. The strategic move to bring in experienced leadership could be seen as an effort to strengthen the bank's financial management and oversight, particularly in light of the recent accounting challenges.

The bank's performance in the coming quarters will be closely watched by investors and analysts, as they assess the impact of these management changes and the bank's strategies to address the sequential decline in key financial metrics.

IndusInd Bank continues to navigate a challenging banking environment, balancing growth aspirations with prudent risk management. The bank's ability to reverse the trend in advances and deposits, while improving its CASA ratio, will be crucial factors in its near-term performance.

IndusInd Bank , one of India's leading private sector banks, has reported a challenging quarter with declining business performance and weakening asset quality. The bank's latest financial results reveal a mixed picture, with some positive surprises amid overall downward trends.

Business Performance

IndusInd Bank experienced a significant decline in its core business metrics for the quarter. The bank's performance can be summarized as follows:

The bank's net advances fell by 8.35% year-on-year to ₹3,27,349 crore, while deposits dropped by 5.48% to ₹3,89,803 crore. Notably, the Current Account Savings Account (CASA) ratio, a key indicator of a bank's ability to gather low-cost deposits, weakened to 30.80% from 35.90% a year earlier.

Financial Performance

Despite the challenging business environment, IndusInd Bank managed to exceed analyst expectations in some key financial metrics:

• Net Profit: Declined by 72% year-on-year to ₹604 crore, but surpassed estimates of ₹525 crore.
• Net Interest Income: Reached ₹4,640 crore, beating expectations of ₹4,207 crore.
• Net Interest Margin: Improved sequentially to 3.46% from 2.25% in the previous quarter.

Asset Quality

The bank's asset quality showed signs of stress:

• Gross Non-Performing Assets (NPAs): Rose to 3.64% from 3.1% in the previous quarter.
• Net NPAs: Increased to 1.12% from 0.95% in the previous quarter.

Market Response

Despite the mixed results, the market response was slightly positive. IndusInd Bank's shares closed at ₹747.55, up 0.52%, indicating that investors may be focusing on the bank's ability to exceed profit expectations in a challenging environment.

Retail and Small Business Focus

As per the bank's disclosure, retail deposits and deposits from small business customers amounted to ₹1,84,157 crore as of 30 September 2025, showing a marginal decrease from ₹1,84,623 crore as of 30 June 2025. This suggests that the bank is maintaining its focus on retail and small business segments, which could be crucial for its stability and growth in the coming quarters.

In conclusion, while IndusInd Bank faces challenges in terms of business growth and asset quality, its ability to exceed profit expectations and maintain a stable retail deposit base could be seen as positive indicators. The bank's performance in the coming quarters will be crucial in determining its trajectory in the competitive Indian banking sector.