Private lender IndusInd Bank, which disclosed accounting lapses earlier in the year, continues to feel pressure on the credit and deposit growth front.

Loan growth fell 13.1% year-on-year while deposits dropped 3.8% in a quarter where major lenders like HDFC Bank and Kotak Mahindra Bank have reported double-digit growth.

IndusInd Bank, in fact, posted ‍a sequential decline in loans for a fourth straight quarter, ⁠dropping 2.2% in the October-December period, while deposits rose 1.1% on a quarter-on-quarter basis.

Net advances fell to Rs 3.19 lakh crore as on end-December 2025, from Rs 3.26 lakh crore in the preceding quarter and Rs 3.67 lakh crore a year ago.

The lender's deposits fell to Rs 3.94 lakh crore as on end-December 2025, from Rs 4.09 lakh crore in the year-ago period. But it rose on a quarter-on-quarter basis from Rs 3.90 lakh crore as on 30 September 2025.

Low-cost CASA (current account and savings account) ratio declined to 30.3% from 30.7% in the previous quarter and 34.9% a year earlier.

IndusInd Bank ‌has slipped after disclosing a $230 million ‍hit in the year ended 31 March 2025 due to accounting lapses in internal derivative trades. This led to resignations of the then CEO Sumant Kathpalia and deputy chief Arun Khurana.