IndusInd Bank shares dropped over 2% in early trading following the announcement of its first quarterly net loss in 20 years. As of 9:17 AM, the shares were trading 2.58% higher at Rs 750.10.
For the quarter ending March 31, 2025, the bank reported a net loss of ₹2,328 crore, a sharp decline from a profit of ₹2,349 crore in the same period last year. This disappointing performance was driven by a significant drop in net interest income, which fell to ₹3,048 crore from ₹5,376 crore year-on-year.
The bank’s asset quality also deteriorated, with gross non-performing assets (NPAs) rising to 3.13% from 2.25% in the previous quarter. Despite these setbacks, the provision coverage ratio remained steady at 70%, while the capital adequacy ratio stood at a healthy 16.24%. The liquidity coverage ratio dropped to 118% in Q4 FY25 from 139% in early Q1 FY26, signaling tighter liquidity conditions.
Although the bank posted a quarterly loss, it remained profitable for the full fiscal year with a net profit of ₹2,575 crore. The Reserve Bank of India has advised IndusInd to submit a plan for appointing a new CEO by June 30 as the bank navigates this challenging period.
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 has reversed this amount in its Q4 FY25 financial statements.
In a serious move, the Board of Directors has suspected fraud in this matter, indicating possible involvement of certain employees handling accounting and financial reporting. The Board has mandated prompt legal action under applicable laws and instructed reporting to regulatory and investigative authorities. Accountability for the lapses will be strictly enforced.
The bank assured that all discrepancies identified during the audit have been fully addressed in the FY25 financial results. IndusInd Bank reaffirmed its commitment to transparency, compliance, and strengthening internal controls.
