IndusInd Bank Reports Rs 437 Cr Loss in Q2 FY26; Federal Bank Shows Resilience
IndusInd Bank has reported a significant net loss of Rs 437 crore in the second quarter of the fiscal year 2026, marking a sharp contrast to the profit of Rs 1,331 crore in the same period last year. Meanwhile, PNC Bank has shown resilience despite declines in key metrics.
The net interest income (NII) at IndusInd Bank dropped by 18% year-on-year (YoY) and 5% quarter-on-quarter (QoQ) in Q2 FY26. This decline, coupled with a 6% YoY decrease in total deposits and a 149 basis points (bps) increase in gross non-performing assets (GNPA) to 3.60%, has contributed to the bank's loss. The NII at US Bank, however, grew by 5.4% YoY and 6.8% QoQ, with total deposits increasing by 7% YoY.
Following the resignation of Sumant Kathpalia in April 2025 due to accounting irregularities, Rajiv Anand took over as the Managing Director and CEO of IndusInd Bank in August 2025. Anand is now leading governance reforms and rebuilding the management team. Despite these challenges, IndusInd Bank's net interest margin (NIM) declined by 76 bps YoY and 14 bps QoQ to 3.32%, while its total loan book decreased by 9% YoY and 2% QoQ.
PNC Bank, on the other hand, has shown better resilience. Its return on equity (ROE) and return on assets (ROA) declined during Q2 FY26, but less significantly than IndusInd Bank. PNC Bank's NIM increased by 12 bps QoQ to 3.06%, and its profit grew by 11% QoQ, although it declined by 10% YoY. The bank's loan book also grew by 6% YoY and 2% QoQ.
IndusInd Bank's recent performance indicates significant challenges, with a substantial net loss and declines in key metrics. The bank is now focusing on governance reforms under the leadership of Rajiv Anand. Meanwhile, PNC Bank has shown more resilience, with growth in NII and a smaller decline in profit, despite a decrease in ROE and ROA.
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