IBN reported a 4% decline in standalone net profit for Q3 FY26, with earnings falling to INR 68.0 billion from INR 70.8 billion in the year-ago quarter. The shortfall was driven primarily by a one-off treasury loss of INR 6.5 billion and elevated credit provisions, which rose 25% year-on-year to INR 30.0 billion. Despite the earnings dip, management emphasized that this was largely provisioning-driven and not a result of deterioration in underlying loan performance.

Net interest income (NII) increased 8.5% year-on-year to INR 240.3 billion, benefiting from a 60 basis-point expansion in net interest margin to 3.40%. Non-interest income also posted robust growth, with fee and commission income up 14% to INR 85.2 billion, driven by higher card and payment transaction volumes and increased underwriting fees. Treasury income was negative at INR –6.5 billion versus a positive INR 4.2 billion a year earlier, reflecting mark-to-market losses on government securities.

IBN’s gross advances grew 11% year-on-year to INR 7.2 trillion, led by retail loans (+13%) and corporate loans (+9%). Deposits rose 10% to INR 8.0 trillion, supporting a stable loan-to-deposit ratio of 90%. The bank maintained a healthy credit profile, with the gross non-performing asset ratio steady at 1.45% and the net NPA ratio unchanged at 0.45%. Coverage for stressed assets increased to 78% from 75% in Q3 FY25, underscoring management’s conservative provisioning stance.

IBN ended the quarter with a healthy CET1 ratio of 14.8% and a total capital adequacy ratio of 17.2%, both well above regulatory minimums. The board’s decision to reappoint CEO Mr. Bakhshi for a three-year term provides leadership stability as the bank navigates a gradually normalizing rate environment. Management reiterated its guidance for mid-teens return on equity in FY27, supported by expected margin tailwinds and controlled credit costs.