Archive · 23 Jul 2026
IndusInd Bank's Q1 Performance Shows Mixed Results
IndusInd Bank's Q1 performance shows a mixed bag of results.
While the bank aims to grow in line with the industry by FY27, its Q1 advances fell by 2.3% year-on-year, contrasting with the system’s 18.6% growth.
The reported net interest margin (NIM) expanded to 3.57%, but adjusted for income-tax refunds, it fell to 3.35% due to more low-yielding wholesale loans.
This suggests that the reported NIM might moderate in the next quarter.
IndusInd Bank's Q1 advances fell by 2.3% year-on-year.
System advances grew by 18.6% year-on-year.
Reported NIM expanded to 3.57% sequentially.
Adjusted NIM fell to 3.35% due to low-yielding wholesale loans.
NIM may moderate in Q2 due to the higher share of low-yielding loans.
- Who
- IndusInd Bank
- What
- Mixed Q1 performance with a fall in advances and fluctuating NIM
- When
- Q1
- Where
- India
- Why
- Due to a higher share of low-yielding wholesale loans and tempered growth expectations
Optimistic View
Cautious View
Growth Expectations
Optimistic View
The management aims to grow broadly in line with the industry by FY27.
Cautious View
Expectations should be tempered due to a 2.3% year-on-year fall in Q1 advances against the system’s 18.6% growth.
Net Interest Margin (NIM)
Optimistic View
Reported NIM expanded almost 20 bps sequentially to 3.57%.
Cautious View
Adjusted for income-tax refunds, NIM fell 4 bps to 3.35% due to a higher share of low-yielding wholesale loans, which may moderate in Q2.
- Q1 Advances Growth
- -2.3% year-on-year
- System Advances Growth
- 18.6% year-on-year
- Reported NIM
- 3.57%
- Adjusted NIM
- 3.35%
- NIM Change
- Fell 4 bps due to low-yielding wholesale loans