IndusInd Bank’s loans grew 11.2% to ₹3.62 lakh crore in the September quarter, while total deposits rose 10.1% to ₹4.29 lakh crore. However, the bank’s CASA ratio slipped to 28%, indicating that more depositors are opting for higher-interest fixed deposits, which may put pressure on profit margins.
IndusInd Bank reported steady growth in its core business for the quarter ended September 30, 2026. According to the bank’s latest provisional business update, net advances climbed to ₹3.62 lakh crore, marking an 11.2% increase compared to the same period last year. Total deposits also saw a healthy rise, reaching ₹4.29 lakh crore, up 10.1% year-on-year.
While the growth in loan and deposit volumes is positive, the bank is seeing a change in how its deposits are structured. The Current Account Savings Account (CASA) ratio, which measures the portion of money customers keep in low-interest savings and current accounts, declined to 28%. This is a drop from 29.4% reported in the previous June quarter. For banks, a falling CASA ratio is often a headwind because it forces them to rely more on expensive term deposits to fund their lending activities. This shift is common across the banking sector as customers seek higher interest rates in the current economic environment, which can put pressure on profit margins.
To manage its liquidity and capital position, the bank actively used the Reserve Bank of India’s foreign currency non-resident deposit swap facility introduced in June. This strategy allowed the bank to mobilize $3.51 billion in deposits, equivalent to roughly ₹33,627 crore. This move highlights the bank's efforts to diversify its funding sources during a period of intense competition for domestic deposits.
Investors are now looking toward the upcoming financial results to see how these volume changes and funding costs have impacted the bank's profitability. The competition for low-cost retail funds remains a key monitorable for the sector. The bank’s Board of Directors is scheduled to meet on October 23, 2026, to review and approve the official financial results for the quarter and half-year ending September 30, 2026. This filing will provide a clearer picture of net interest margins and asset quality trends.