IndusInd Bank Limited (NSE: INDUSINDBK, BSE: 532187) announced its audited Q4 FY25 results, revealing a net loss of ₹2,329 crore, driven by a 52% YoY decline in total income and elevated provisions. The bank’s gross non-performing assets (GNPA) rose to 3.13% (up 61 bps QoQ), while deposits grew 7% YoY to ₹4,10,862 crore.
Financial Performance Highlights
- Loans: Contracted 6% QoQ to ₹3,45,019 crore, with the vehicle finance segment contributing 28% of the book.
- Deposits: Increased 7% YoY to ₹4,10,862 crore, though CASA declined 7% YoY to ₹1,34,789 crore.
- Net Interest Income: Plunged 43% YoY to ₹3,048 crore, with net interest margin (NIM) at 2.25% (down 168 bps QoQ).
- Asset Quality: Net NPA stood at 0.95%, with provisions surging 165% YoY to ₹2,522 crore.
- Capital Adequacy: Robustly remained at 16.24% (Tier 1: 15.10%), significantly exceeding regulatory needs.
Segment-Wise Performance
- Vehicle Finance: The bank’s core vertical reported a 2% YoY growth in disbursements but saw a 6% QoQ decline in loan book to ₹95,595 crore. Construction equipment and tractor loans constituted 14% and 8% of the portfolio, respectively.
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- Micro Loans: The microfinance portfolio shrank 21% YoY to ₹30,909 crore, with collection efficiency at 96.7% in March 2025. Over 60% of disbursements targeted centers with >5 years of vintage.
- Corporate Banking: Loans declined 16% QoQ to ₹1,43,463 crore, with 71% of LC-BG exposures rated investment grade. Loans to the gems and jewellery industry comprised 2.62% of the total.
Digital and Operational Metrics
- Digital Transactions: 93% of total transactions processed digitally.
- Cost-to-Income Ratio: Spiked to 113.07% due to declining revenues.
- Liquidity Coverage Ratio: Maintained at 118%, reflecting strong liquidity buffers.
Strategic Initiatives and Outlook
The bank emphasized its Digital 2.0 strategy, focusing on SME launches and affluent/NRI banking. Management highlighted plans to recalibrate the microfinance portfolio and expand the Bharat Money Store network to 81,000+ outlets. Despite near-term challenges, the 7,174-strong branch network and 16.24% CRAR position the bank for calibrated growth in FY26.
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Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. We are not registered financial advisors. Please conduct your own research and consult a qualified advisor before making investment decisions. Any investment decisions you make based on this information are solely at your own risk.
Also read: RBI Imposes ₹2.11 Crore Penalty on Tata Motors for FEMA Violations
Published on: May 20, 2025 / M Vishnu
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