IndusInd Bank stock dropped 4% following its Q4 FY25 business update, revealing the weakest year-on-year (YoY) business momentum in nearly five years. The private lender reported muted growth, raising investor concerns.
Net advances rose just 1.4% YoY to ₹3.47 lakh crore but saw a sharp 5.2% decline quarter-on-quarter (QoQ). Total deposits increased 6.8% YoY and a marginal 0.4% QoQ to ₹4.11 lakh crore. However, the CASA (Current Account Savings Account) ratio deteriorated to 32.8% from 37.9% YoY and 34.9% QoQ, indicating a shift towards costlier term deposits.
The bank’s corporate banking segment saw notable stress, with net advances falling 4.9% YoY and 15.1% QoQ. On the other hand, consumer banking provided some cushion, growing 6.3% YoY and 3.4% QoQ.
Retail and small business deposits also weakened, dropping to ₹1.85 lakh crore from ₹1.88 lakh crore in the previous quarter. Liquidity remained adequate, with a daily average Liquidity Coverage Ratio (LCR) of 118.4% and 136.2% as of March 31, 2025.
IndusInd Bank shares opened at ₹637.00, matching the day’s low, and climbed to a high of ₹659.40. Despite recent fluctuations, the stock remains well below its 52-week high of ₹1,576.35, with the 52-week low at ₹606.00.
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