IndusInd Bank has released its business update for the fourth quarter of the financial year 2025, reflecting moderate growth in net advances and a significant increase in deposits. However, the CASA (Current Account Savings Account) ratio has declined over the year.
Key Highlights:
Net Advances stood at ₹3.47 lakh crore, marking a 1.4% year-on-year (YoY) increase, but showing a 5.2% decline on a quarter-on-quarter (QoQ) basis.
Deposits reached ₹4.11 lakh crore, representing a 6.8% YoY growth and a 0.4% QoQ rise.
CASA Ratio was reported at 32.8%, lower than 37.9% a year ago and 34.9% in the previous quarter.
Performance Analysis
Net Advances
The bank’s net advances saw a modest 1.4% YoY growth, but a 5.2% decline QoQ. Corporate banking witnessed a 4.9% YoY contraction and a 15.1% QoQ drop, whereas consumer business remained strong with 6.3% YoY and 3.4% QoQ growth.
Deposits
Total deposits stood at ₹4.11 lakh crore, growing 6.8% YoY and 0.4% QoQ. Retail deposits and deposits from small business customers amounted to ₹1.85 lakh crore as of March 31, 2025, compared to ₹1.88 lakh crore in December 2024.
CASA Ratio
The CASA ratio continued its downward trend, dropping to 32.8% from 37.9% YoY and 34.9% QoQ. This decline suggests that the bank is relying more on term deposits, which may impact margins going forward.
Liquidity Coverage Ratio (LCR)
The daily average LCR for Q4 FY25 stood at 118.4% and was 136.2% as of March 31, 2025, ensuring ample liquidity buffer for the bank.
IndusInd Bank’s Q4 FY25 business update indicates stable deposit growth but a contraction in net advances on a quarterly basis. The decline in CASA ratio suggests a shift towards term deposits, which may impact profitability. Investors and stakeholders will now look forward to the bank’s detailed financial results to gauge overall performance and future outlook.
Disclaimer
The information in this article is based on IndusInd Bank’s official filing with the stock exchanges. It is for informational purposes only and should not be construed as financial advice. Readers are advised to conduct their own research before making any investment decisions.