Q3 Results: IndusInd Bank Profit Drops 39% and Punjab National Bank Soars 103% YoY
IndusInd Bank Ltd: Overview
IndusInd Bank Ltd. is a leading private sector bank in India, offering a diverse range of banking products and financial services to individuals, corporates, and SMEs. Established in 1994, the bank has grown into a strong player in retail, corporate, and wealth management segments, with a focus on digital banking and innovative financial solutions. It has a widespread presence with over 2,600 branches and 2,900+ ATMs across India, along with representative offices in key global financial hubs. The bank’s loan book is well-diversified, covering vehicle finance, microfinance, SME lending, and corporate banking. IndusInd Bank is known for its strong asset quality, stable deposit base, and focus on high-yield lending segments, driving consistent growth and profitability. The Indian banking sector remains on a growth trajectory, supported by economic expansion, increasing digital adoption, and rising credit demand. Private sector banks like IndusInd Bank are expected to benefit from a shift towards formal banking, financial inclusion initiatives, and a growing middle-class population. Key trends shaping the industry include the rise of fintech partnerships, growth in retail and SME lending, and enhanced regulatory frameworks ensuring financial stability. While challenges such as interest rate fluctuations, asset quality concerns, and global economic uncertainties persist, IndusInd Bank’s robust risk management, diversified loan portfolio, and digital-first approach position it well to navigate industry dynamics and capture long-term growth opportunities.
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IndusInd Bank’s loan book stands at ₹366,889 crore, while deposits have reached ₹409,438 crore, demonstrating a well-diversified portfolio across products and geographies. The CASA ratio is at 35%, ensuring stable, low-cost deposits, and the loan mix is balanced at 54:46 between retail and wholesale lending. Key segments include microfinance (9%), gems & jewellery (3%), and vehicle finance (25%) of the total loan book. The bank maintains strong asset quality with a 70% Provision Coverage Ratio (PCR), Gross NPA at 2.25%, and Net NPA at 0.68%. Loan against property has grown 14% YoY to ₹11,986 crore, while the cost of deposits stands at 6.58% with a 3% QoQ increase. IndusInd Bank operates one of the largest treasury divisions among Indian banks, backed by best-in-class risk management systems. It has allocated a specific provision of ₹5,809 crore for non-performing accounts, floating provisions of ₹70 crore, and standard contingent provisions of ₹1,325 crore, with total loan-related provisions amounting to ₹8,792 crore (2.40% of total loans). The bank disburses over ₹200 crore in loans each month, acquires 70,000+ new clients monthly, and books fixed deposits worth ₹2,000 crore monthly. Leveraging advanced technology, IndusInd Bank employs 21+ machine learning-based propensity models and 70+ campaign triggers to drive cross-selling, bill payments, UPI mandates, and tier retention, ensuring continuous customer engagement and portfolio growth.
Q3 FY25 Earnings
- Revenue of ₹12801 crore in Q3 FY25 up by 10.6% YoY from ₹11572 crore in Q3 FY24.
- Financing loss of ₹495 crore in this quarter at a margin of -4% compared to 6% in Q3 FY24.
- Profit of ₹1401 crore in this quarter compared to a ₹2298 crore profit in Q3 FY24.
Punjab National Bank Ltd: Overview
Punjab National Bank (PNB) is one of India’s largest public sector banks, offering a comprehensive range of banking and financial services. With a vast nationwide presence and a strong customer base, PNB provides retail and corporate banking solutions, including loans, deposits, treasury operations, and digital banking services. The bank maintains a well-diversified loan portfolio across sectors such as agriculture, MSMEs, corporate lending, and retail finance, ensuring balanced growth. Additionally, PNB continues to focus on asset quality improvement and digital transformation to enhance operational efficiency and customer experience. The Indian banking industry is witnessing steady credit growth, driven by economic recovery, increased demand for retail loans, and infrastructure development. Public sector banks, including PNB, are benefiting from government reforms, recapitalization measures, and digital banking adoption. However, challenges such as asset quality risks, regulatory changes, and interest rate fluctuations remain key factors to monitor. As the industry moves towards greater financial inclusion and technological advancements, PNB is strategically positioning itself to leverage these opportunities while strengthening its balance sheet and enhancing profitability.
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Net Interest Income (NII) grew by 7.2% YoY. The bank’s asset quality improved, with Gross Non-Performing Assets (GNPA) declining to 4.09% (a 215 bps YoY reduction) and Net NPA falling to 0.41% (a 55 bps YoY decline). The Provision Coverage Ratio (PCR), including technical write-offs, stood at 96.77%, marking an improvement of 249 bps YoY. Credit cost showed a decline of 114 bps YoY, further strengthening the bank’s financial health. PNB’s agriculture priority sector (PS) advances reached 18.20% of Adjusted Net Bank Credit (ANBC), exceeding the regulatory norm of 18%. The bank also facilitated loan disbursement for the e-PM Vishwakarma scheme through the PNB Digital Rupee App, simplifying subsidy disbursement under the Subhadra Yojana. The bank operates internationally with branches in Dubai and Gift City, Gandhinagar, while its subsidiaries are located in London (UK) and Bhutan. Additionally, PNB has a joint venture in Nepal. The fee-based income for Q3 stood at ₹1,311 crore, contributing to overall revenue growth. PNB’s cost of deposits was 5.24%, lower than IndusInd Bank, while the yield on advances stood at 8.5%. The total GNPA ratio improved from 6.24% to 4.09% in the latest quarter, reflecting enhanced asset quality management.
Q3 FY25 Earnings
- Revenue of ₹31895 crore in Q3 FY25 up by 14.5 % YoY from ₹27852 crore in Q3 FY24.
- Financing profit of ₹3663 crore in this quarter at a margin of 11% compared to 3% in Q3 FY24.
- Profit of ₹4811 crore in this quarter compared to a ₹2441 crore profit in Q3 FY24.