IndusInd Bank reported a net loss of ₹444.8 crore for the September quarter, missing expectations of a ₹309 crore profit, compared with a profit of ₹1,325.5 crore in Q2 FY25.

The bank’s net interest income (NII) declined 17.5% YoY to ₹4,409.3 crore, from ₹5,347 crore a year ago, while fee and other income fell to ₹1,651 crore from ₹2,185 crore in Q2 FY25. Net interest margin (NIM) dropped to 3.32% in Q2 FY26 from 4.08% in Q2 FY25.

Yield on assets stood at 8.75%, down from 9.58%, and cost of funds slightly improved to 5.43% from 5.54%.

Asset quality showed modest improvement, with gross NPA at ₹12,057.8 crore (3.60%) and net NPA at ₹3,399.4 crore (1.04%) versus 3.64% and 1.12% in the previous quarter. Provision Coverage Ratio (PCR) rose to 71.81% from 70.13% in Q1 FY26.

Provisions surg

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