India's IndusInd Bank reported a fall in third-quarter profit on Friday, as it set aside more funds for potential loan losses amid a deterioration in asset quality. The private lender posted a net profit of 14.

Private sector lender IndusInd Bank reported a 39 per cent year-on-year (Y-o-Y) decline in net profit to Rs 1,402 crore in the quarter ended December (Q3FY25) due to a significant jump in provisions and contingencies following higher slippages during the quarter, especially from the microfinance portfolio.

IndusInd Bank reports 39% y-o-y fall in net profit, higher provisions, and expenses; cautious on microfinance segment.

India's IndusInd Bank reported a slightly sharper than expected drop in third-quarter profit on Friday, as it set aside more funds to cover bad loans and as asset quality deteriorated due to stress in microfinance loans.

Shares of IndusInd Bank ended in the green ahead of the results. The stock closed at ₹992.15 on the BSE, up nearly 4%.

IndusInd Bank is expected to report weak earnings for the third quarter of FY25 due to slower loan growth, elevated slippages and higher credit costs, declining net interest margins and a slight deterioration in asset quality.