IndusInd Bank reported a nearly 40% drop in second-quarter earnings on Thursday, missing analyst expectations by a huge margin.

What Happened: The private sector lender posted a net profit of ₹1,325.45 crore for the quarter ended September, compared with the ₹2,181.47 crore it had earned a year earlier. This was much lower than analyst expectations for a ₹2,207 crore bottom line figure.

The company’s net interest income stood at ₹5,347.26 crore, up 5.3% from the ₹5,076.73 crore it posted in the year-ago period. The topline figure also missed estimates of ₹5,533 crore.

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Other Key Numbers: The bank reported a net interest margin (NIM) of 4.08% for the quarter, compared with 4.29% for Q2FY24 and 4.25% for Q1FY25.

Gross non-performing assets (NPA) and Net NPA ratios ticked up to 2.11% and 0.64%, compared with 1.93% and 0.57%, respectively.

Price Action: Ahead of results, shares of IndusInd Bank ended 0.37% higher at ₹1,279 on Thursday. The stock has lost 20% in value so far this year.

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