India, Jan. 25 -- Private sector lender IndusInd Bank on Friday reported a 90 per cent drop in its December quarter net profit to Rs 127.98 crore, as it witnessed higher stress in the microfinance book and degree loan book under the new management.

The Hinduja group-promoted bank, which has had a challenging few quarters that saw the discovery of fraud and ensuing change in top leadership, had reported a loss of Rs 437 crore in the preceding September quarter. The bank has begun a "right-sizing" of its balance sheet, which involves shedding inefficient assets and expensive liabilities such as bulk deposits, its managing director and chief executive Rajiv Anand said, adding that it aims to grow in line with the system in FY27.

The core n...