The private sector lender reported a mixed operating performance for the period, with a drop in net advances and a sequential improvement in deposits, even as pressure on low-cost funding continued to weigh.
As of December 2025, the bank’s net advances stood at Rs 3.18 lakh crore, down from the previous year and also lower by 2.2% sequentially from the September 2025 quarter.
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On the liabilities front, total deposits were at Rs 3.94 lakh crore, a near 4% decline from Rs 4.09 lakh crore a year ago. However, deposits did show a modest 1% quarter-on-quarter rise from Rs 3.89 lakh crore, indicating some recovery in deposit mobilisation after a volatile first half of the financial year.
Despite the improvement in deposits, the share of low-cost CASA (Current Account and Savings Account) deposits continued to slide. The CASA ratio declined further to 30.3% in the December quarter, compared to 34.9% a year ago and 30.7% in the preceding quarter.
The sustained fall reflects a continued shift by depositors towards higher-yielding term deposits and other investment instruments.A lower CASA ratio can lead to increased funding costs, which could in turn pressure net interest margins unless the bank is able to reprice its assets effectively. The bank’s update suggested that while advance growth remained subdued, the gradual improvement in deposit traction points to a focus on balance sheet stability.
On Monday, the shares of IndusInd Bank closed flat at Rs 899.50 on the BSE.
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