1. At a Glance – Blink and You’ll Miss the Damage
IndusInd Bank currently trades at ₹892, carrying a market capitalisation of ₹69,525 crore, a price-to-book of ~1.07x, and a ROE that has collapsed to 4.02%. Over the last 3 months, the stock bounced ~18%, which looks impressive until you realise the 5-year return is basically zero, making long-term investors feel like they parked money in a savings account with emotional trauma.
The latest Q3 FY26 results (Dec 2025) show PAT of just ₹128 crore, down 90.9% YoY, after a brutal sequence of derivative accounting issues, elevated provisions, rising GNPA, and senior management exits that read like a LinkedIn resignation festival.
Gross NPA has climbed to 3.56%, Net NPA to 1.04%, and ROA is stuck at 0.48%—a level where private banks start resembling confused PSU banks.
This is not a growth story quarter. This is a damage assessment report.
2. Introduction – Once a Private Bank Darling, Now an Auditor’s Case Study
There was a time when IndusInd Bank was spoken about in the same breath as Axis and Kotak. Strong retail focus, microfinance scale via BFIL, and healthy margins made it look like a disciplined growth machine.
Fast forward to FY25–FY26, and the story has turned into a corporate governance + accounting + execution stress cocktail.
Between:
- Derivative accounting irregularities
- SFIO investigations
- Microfinance income recognition issues
- Top-level exits (CTO, senior execs, chairman)
…the market has stopped trusting reported numbers at face value. And when trust goes, valuation follows it to the basement.
This quarter is less about “how much did they earn” and more about “what else is hiding in the footnotes?”
3. Business Model – WTF Do They Even Do?
IndusInd Bank operates across three main engines:
Retail Banking (66% of business in H1 FY25)
Includes vehicle finance, personal loans, credit cards, MFI via BFIL, and other retail products. Vehicle finance alone is 25% of the loan book, which is great when the economy is humming—and painful when delinquencies spike.
Corporate & Commercial Banking (21%)
Mid and large corporates, working capital, structured lending. This is where derivative exposures and treasury-linked surprises tend to pop up.
Treasury (13%)
Once a stabiliser, now a volatility amplifier due to derivative accounting noise.
In theory: diversified.
In practice: too many moving parts, not enough control screws tightened.
4. Financials Overview – Numbers Don’t Lie, But They Do Sweat
Quarterly Comparison Table (₹ crore)
| Metric | Latest Qtr (Dec 25) | YoY Qtr (Dec 24) | Prev Qtr (Sep 25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 11,373 | 12,801 | 11,609 | -11.1% | -2.0% |
| EBITDA / PBT proxy* | 174 | 1,857 | -584 | -90.6% | NA |
| PAT | 128 | 1,402 | -437 | -90.9% | NA |
| EPS (₹) | 1.64 | 18.00 | -5.61 | -90.9% | NA |
*Banks don’t report EBITDA traditionally; PBT used for directional comparison.
EPS Annualisation (Locked – Quarterly Results):
Q1 FY26 EPS = 7.75
Q2 FY26 EPS = -5.61
Q3 FY26 EPS = 1.64
Average = 1.26 →
