As of December 2025, the bank’s net advances stood at Rs 3.18 lakh crore, down 13% on a year-on-year basis and 2.2% sequentially from the September quarter.
On the liabilities side, total deposits came in at Rs 3.94 lakh crore, marking a near 4% decline from Rs 4.09 lakh crore a year ago. However, on a quarter-on-quarter basis, deposits rose 1% from Rs 3.89 lakh crore at the end of September, indicating some stability in deposit mobilisation after a volatile first half of the year.
The sequential uptick suggests that deposit traction is improving, although competition for term deposits remains intense across the banking sector.
The bank’s CASA ratio declined further to 30.3% in the December quarter, compared with 34.9% a year earlier and 30.7% in the September quarter. The fall highlights ongoing pressure on low-cost deposits as customers continue to shift funds towards higher-yielding term deposits and alternative savings instruments.
A lower CASA ratio typically raises funding costs, which could weigh on net interest margins if not offset by repricing of assets.
Overall, the Q3 numbers suggest that IndusInd Bank is prioritising balance sheet stability over aggressive growth in the near term. While advances growth has softened, the gradual stabilisation in deposits is a positive signal.Going ahead, investors will closely track trends in credit growth, deposit costs and the bank’s ability to rebuild its CASA base as liquidity conditions ease and system-level competition normalises.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)