IndusInd Bank Q2 Business Update: Advances and Deposits Rise

Net Advances stood at Rs 3,62,393 crore as of September 30, 2026.
Total Deposits reached Rs 4,29,038 crore for the same period.

Reader Takeaway: Strong loan and deposit momentum drives expansion, but shrinking CASA ratio remains a key margin pressure point.

What just happened

IndusInd Bank has released its unaudited business performance figures for the quarter ended September 30, 2026. The bank recorded strong double-digit growth in both its loan book and deposit base on a year-on-year basis. Specifically, net advances grew by 11.2% compared to the same quarter last year, reaching Rs 3,62,393 crore. Deposits followed a similar trend, growing 10.1% year-on-year to Rs 4,29,038 crore.

Why this matters

The growth in advances indicates healthy credit demand across the bank’s segments. However, the CASA (Current Account Savings Account) ratio has continued a downward trend, dropping to 28.0% from 30.7% in September 2025. A lower CASA ratio typically implies a higher cost of funds for the bank, as customers shift toward term deposits. The bank also provided an update on its participation in the RBI's FCNR(B) deposit swap facility, having mobilized USD 3.51 billion in deposits.

Risks to watch

The sustained decline in the CASA ratio over three consecutive quarters is a critical metric for investors. If the deposit mix continues to shift away from low-cost CASA, the net interest margins (NIMs) could face pressure in upcoming quarters despite healthy loan growth.

Context metrics

• Retail and small business deposits: Rs 2,14,504 crore as of Sept 2026.
• FCNR(B) Outstanding Loan (Gift City): USD 1.73 billion.
• FCNR(B) Standby Letters of Credit: USD 0.50 billion.