IndusInd Bank turns around, Arijit Basu is new chairman

MUMBAI: IndusInd Bank swung back to profit in the December quarter, reversing a September-quarter loss, but earnings stayed sharply lower year-on-year as the lender shrank its balance sheet and absorbed higher provisions. It posted a net profit of Rs 128 crore for Q3 FY26, against a Rs 437 crore loss in Q2. A year earlier, profit stood at Rs 1,402 crore.The bank named former SBI executive Arijit Basu non-executive chairman, replacing Sunil Mehta, who retires this month. CEO Rajiv Anand said he is reviewing talent and will hire a Chief Technology Officer, chief risk offer and a retail head, adding to recent inductions across wholesale, HR, data, SME and digital roles, including MD & CEO, BFIL. Anand took charge in Aug 2025 after former CEO Sumant Kathpalia stepped down following accounting irregularities pertaining to derivatives that led to a nearly Rs 2000 crore loss.Profit recovered sequentially despite core-income pressure. NII rose 3.5% QoQ to Rs 4,562 crore, but fell 13% YoY. Other income slid 28% to Rs 1,707 crore on weaker treasury/fee flows. Operating expenses stayed flat at Rs 3,999 crore, stabilising operating profit, while provisions climbed 20% to Rs 2,096 crore. The bank held Rs 8,231 crore of specific NPA provisions at end-Dec.The bank’s balance-sheet reset continued. Deposits fell 4% YoY to Rs 3.94 lakh crore and advances shrank 13% to Rs 3.18 lakh crore as the bank exited bulk deposits and low-yield assets. Asset quality improved marginally QoQ, with the gross NPA ratio easing to 3.56% from 3.60%, though higher than 2.25% a year ago. Gross NPAs rose to Rs 11,605 crore from Rs 8,375 crore.Returns remained muted. RoA stood at 0.10% and RoE at 0.79%, while capital adequacy stayed comfortable at 16.94%. Management said Q3 marked an early transition phase under its three-year plan, with steady margins, a lower deposit cost and tight cost control driving the quarter-on-quarter rebound despite weak year-on-year comparisons.