As provisions increase and asset quality stabilizes, IndusInd Bank announces an unexpected Q2 loss.

After reporting a profit of ₹1,325.5 crore in Q2 FY25, IndusInd Bank missed expectations of a ₹309 crore profit with a net loss of ₹444.8 crore for the September quarter. The bank's fee and other income dropped to ₹1,651 crore from ₹2,185 crore in Q2 FY25, while its net interest income (NII) decreased 17.5% YoY to ₹4,409.3 crore from ₹5,347 crore a year earlier. In Q2 FY26, the net interest margin (NIM) decreased from 4.08% in Q2 FY25 to 3.32%. The cost of funds improved somewhat to 5.43% from 5.54%, while the yield on assets was 8.75%, down from 9.58%.