IndusInd Bank returns to profitability in third quarter as microloan stress begins to stabilize

IndusInd Bank posted a third-quarter profit of 1.61 billion rupees following a significant loss in the prior period. Stabilizing asset quality and reduced expenses drove the recovery.

Insights:
IndusInd Bank Limited reported a return to profitability for the third quarter ending December 31, 2025, posting a net profit of 1.61 billion rupees. While this represents a 90% year-on-year decline from the 14.01 billion rupees recorded in the same period last year, the result marks a significant sequential improvement from the 4.45 billion rupee loss the bank reported in the second quarter. The recovery in India ININcomes as the lender navigates a complex period of leadership transitions and addresses governance concerns that previously impacted its financial health.
A signage of the IndusInd Bank is displayed outside a building with one of its ATMs at Connaught Place in New Delhi, India, March 25, 2025. REUTERS/Anushree Fadnavis
A signage of the IndusInd Bank is displayed outside a building with one of its ATMs at Connaught Place in New Delhi, India, March 25, 2025. REUTERS/Anushree Fadnavis
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