Shares of IndusInd Bank recovered 5% from intraday lows on Thursday, as investor sentiment improved following management’s assurance that the bank is taking corrective measures and expects to enter FY26 on a clean slate.
For the quarter ended March 31, 2025, the bank reported a net loss of ₹2,328 crore, a sharp contrast to the ₹2,349 crore profit in the same quarter last year. The loss was primarily driven by a steep decline in net interest income, which fell to ₹3,048 crore from ₹5,376 crore year-on-year.
Asset quality worsened, with gross NPAs rising to 3.13% from 2.25% sequentially. However, the provision coverage ratio remained stable at 70%, and the capital adequacy ratio stood firm at 16.24%. The liquidity coverage ratio dipped to 118% from 139%, reflecting tighter liquidity conditions.
Despite the quarterly loss, IndusInd Bank remained profitable for FY25, posting a full-year net profit of ₹2,575 crore. The Reserve Bank of India has asked the bank to present a CEO succession plan by June 30, 2025.
In the meantime, IndusInd Bank has revealed a significant accounting discrepancy in its microfinance business (MFI) following an internal audit submitted on May 20, 2025. The audit found that Rs 172.58 crore was incorrectly recognized as fee income over three quarters of FY25.
The bank’s Board of Directors has flagged the matter as suspected fraud, involving potential misconduct by employees responsible for accounting and financial reporting. Legal action under relevant laws has been initiated, and the bank has reported the issue to regulatory and investigative authorities.
IndusInd Bank shares opened at ₹750.00 today, hitting a high of ₹796.70 and a low of ₹725.80 during trading. The stock remains volatile, well below its 52-week high of ₹1,550.00, though still above the 52-week low of ₹606.00.
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