IndusInd Bank posted a mixed operating performance for the December 2025 quarter, marked by a 13% year-on-year decline in net advances to ₹3.19 lakh crore, reflecting continued balance sheet consolidation and subdued credit growth. On the liabilities side, deposits showed signs of recovery, rising 1% sequentially to ₹3.94 lakh crore, though still down 4% from a year ago. The bank’s CASA ratio dipped further to 30.3%, from 34.9% a year ago, amid persistent outflows into higher-yielding term deposits, raising concerns over funding costs and margin pressure. Retail and small business deposits remained stable at around ₹1.85 lakh crore. As the fifth-largest private sector bank in India by revenue, IndusInd appears to be prioritizing balance sheet stability over aggressive lending expansion. While the modest deposit rebound signals improving traction, the shrinking loan book and declining low-cost deposits suggest near-term challenges in restoring sustainable growth momentum. Investors will watch upcoming earnings for asset quality trends, NIM trajectory, and management’s strategy to revive credit growth and rebuild its CASA franchise in a competitive liquidity environment.

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