According to reports from Business Standard, Crisil Ratings has upgraded its outlook on IndusInd Bank's long-term debt instruments to 'stable' from 'negative' while reaffirming its rating at 'Crisil AA+'. The rating agency has also reaffirmed its 'Crisil A1+' rating on the bank's short-term debt instruments. The revision factors in the gradual improvement in earnings profile, stabilisation in deposit franchise with increasing share of granular deposits, and strategic shift in lending to relatively stable asset segments. As reported by Crisil Ratings, the improvement was primarily driven by lower credit costs and stronger operating profitability, with credit cost moderating to around 1% in Q1 FY27 from 1.5% for fiscal 2026. The revision in outlook covers infrastructure bonds and Basel III-compliant Tier 2 bonds, suggesting a more favourable view of the bank's capital and asset quality trajectory following prior concerns reflected in the Negative outlook.
According to Business Standard, IndusInd Bank delivered a stronger performance in Q1 FY27 with net profit rising to ₹1,037 crore from ₹889 crore in fiscal 2026. The bank achieved a return on assets (RoA) of 0.8% for the first quarter of fiscal 2027, significantly higher than ₹889 crore and 0.2% respectively for fiscal 2026. The improvement was primarily driven by lower credit costs and stronger operating profitability, with credit cost declining to around 1% for this period from 1.5% for fiscal 2026. As reported by Crisil Ratings, the bank's improved profitability metrics indicate a gradual strengthening in underlying earnings, though sustaining this improvement in profitability and maintaining control over credit costs will remain key monitorables going forward. The bank also reported a 46.51% year-on-year increase in standalone net profit to ₹1,002.50 crore for the quarter ended June 30, 2026, compared with ₹684.25 crore in the corresponding quarter last year.
According to Business Standard, the bank has been reducing its reliance on high-cost deposits and focusing on more granular deposits. As reported by Crisil Ratings, the share of average retail deposits stood at 49.5% for the quarter ended June 30, 2026, as against 47.9% in the previous quarter. This has led to a drop in cost of deposits to 5.95%, from 6.07% for the previous quarter and 6.44% for the corresponding period of the previous fiscal. The bank's pre-provisioning profit (PPoP) as a percentage of average assets improved to 2.0% for the first quarter of fiscal 2027, as against 1.7% in fiscal 2026, indicating stronger operational efficiency. The bank's total income, however, declined 9.19% YoY to ₹13,095.30 crore during the quarter.
As reported by Business Standard, the bank has adopted a balanced strategy and is focused on building a diversified loan portfolio across retail, SME and corporate loan segments. According to Crisil Ratings, the SME portfolio is likely to gradually build up and contribute 10-15% of the overall loan book over the medium term. The bank will leverage its strong presence in the vehicle finance and microfinance segments while scaling up secured asset classes, including home loans. The ratings continue to reflect healthy capitalisation with a high core equity ratio and adequate pre-provisioning profitability, though these strengths are partially offset by the bank's average asset quality and modest resource profile vis-à-vis peers.
According to Business Standard, the bank's stock has shown mixed performance with gaining 43% from the 52-week low of ₹710.85 on September 26, 2025, though it fell 0.15% to ₹1,010.40 in the previous session with market cap declining to ₹78,844 crore on BSE. The stock is currently trading lower than the 5-day, 10-day, and 30-day moving averages but higher than the 20-day, 50-day, 100-day and 200-day moving averages. In a year, the stock has gained 29% and 13% in three months, indicating recent recovery momentum despite short-term volatility. The bank operates with a pan-India presence, having around 6,560 branches and 2,853 automated teller machines as on June 30, 2026, along with representative offices in Dubai, Abu Dhabi and London.
