IndusInd Bank on Monday (January 5, 2026) reported a sequential decline ‍in loans for a fourth ​straight quarter, reflecting continued pressure on the ‌private lender’s growth.

Loans dropped 2.2% ​quarter-on-quarter in the October–December period, while deposits rose 1.1%, it said.

On a year-on-year basis, loans fell 13.1%, while deposits dropped 3.8%.

This is in contrast to other major lenders like ​HDFC Bank and Kotak Mahindra Bank, ⁠which have reported double digit year-on-year loan growth for the December quarter, signalling a rebound ​in credit demand ⁠in the world’s fastest-growing major economy.

IndusInd Bank has been under pressure since disclosing a $230 million hit in the ‌year ended March 31, 2025 ‌due to misaccounting in internal derivative trades, which raised concerns over ‍governance and led to the resignations of the then CEO Sumant Kathpalia ‍and deputy chief Arun Khurana.

Veteran banker Rajiv Anand took the helm at IndusInd in August after receiving regulatory approval from the Reserve Bank of India.

IndusInd shares, which had fallen sharply post the misaccounting disclosure, have largely ⁠recovered. However, loan and deposit growth has remained under pressure.

The lender’s ​current account and savings account (CASA) ratio – a ⁠key measure of low-cost deposit base and operational efficiency – declined to 30.3% from 30.7% in the previous quarter and 34.9% a ⁠year earlier.