IndusInd Bank Ltd on Wednesday released its fiscal fourth quarter earnings with a loss of Rs 2,328.92 crore in comparison to a profit of Rs 2,349.08 crore recorded during the corresponding quarter of FY24. The net interest income (NII) for the quarter stood at Rs 3,048.3 crore, down 43.3 per cent on-year as against Rs 5,376.5 crore reported during the fourth quarter of previous financial year.
According to a CNBC TV18 poll, the Bank was expected to post Q4 loss at Rs 514.43 crore and NII for the quarter in review was estimated at Rs 4,762.42 crore.
IndusInd Bank’s asset quality
The Gross NPA was at 3.13 per cent of gross advances as on March 31, 2025 as against 2.25 per cent as on December 31, 2024. Net Non-Performing Assets were 0.95 per cent of net advances as on March 31, 2025 as compared to 0.68 per cent as on December 31, 2024. The Provision Coverage Ratio was consistent at 70 per cent as at March 31, 2025. Provisions and contingencies (other than tax) for the year ended March 31, 2025 were Rs 7,136 crore as compared to Rs 3,885 crore for the corresponding quarter of previous year.
A series of accounting irregularities and its impact on Bank’s financials
The private sector lender has been under fire after the Bank confirmed accounting irregularities totalling Rs 1,269 crore. It had informed the exchanges that its Internal Audit Department (IAD) had identified two significant financial discrepancies – one, the Bank’s statement showed Rs 674 crore incorrectly recorded as interest income across three quarters of FY25. Additionally, a whistleblower complaint led to the discovery of unsubstantiated balances of Rs 595 crore in “other assets” accounts. Before this, earlier in March, IndusInd Bank had disclosed a Rs 1,580 crore discrepancy in its derivatives portfolio, which it had said could hit its net worth by approximately 2.35 per cent as of December 2024.
In a statement, IndusInd Bank said, “As disclosed through stock exchange intimations, the Bank has faced multiple material developments since Mar-25. These developments have been unfortunate to have taken place in a bank. However, the Board and the Management of the Bank are determined to address all issues brought to their attention, in a holistic and timely manner.”
Sunil Mehta, the Chairman of the Board of Directors, IndusInd Bank, said, “The Board and the Management acknowledge that the lapses happened have been unfortunate for an institution like our Bank. However, the Board along with the management have shown a strong resolve to address all the identified issues in a timely and comprehensive manner. The Bank has a robust net worth and balance sheet even after absorbing impact from all the past anomalies.
“The Bank at its core has a profitable business model and it will pivot towards sustainable growth as we put this episode behind us. The Bank would like to express its gratitude to the regulators and particularly the RBI for its support and guidance in helping navigate these challenging times,” he added.
IndusInd Bank profitable for FY25
Today in a regulatory filing, the Bank maintained that it has appropriately accounted for and reflected the impact while finalizing the results for the Quarter/ Twelve Month ended March 31, 2025.
For the full year, the Bank reported net profit at Rs 2575.41 crore. NII for the year FY25 stood at Rs 19,031 crore as compared to year FY24 at Rs 20,616 crore. “The Bank’s financials now reflect full and fair representation of all the concerns brought to its attention. Whilst the Bank has reported a loss for Q4 due to these extraordinary developments, the Bank has been profitable for the full year FY25 with Profit After Tax of Rs 2,575 crore,” it said.
The bank’s balance sheet, it informed, remained healthy after absorbing all these impacts with a Capital Adequacy Ratio of 16.24 per cent, Provision Coverage Ratio of 70 per cent and average LCR of 118 per cent with excess liquidity of Rs 39,600 crore. The liquidity, meanwhile, remained comfortable in current quarter as well with average LCR of 139 per cent in the first half of the quarter.
Soumitra Sen and Anil Rao, the members of the Committee of Executives, IndusInd Bank, said: “The Bank’s core competencies remain strong which allows it to take these challenges in its stride. We are confident that the Bank will emerge stronger as the foundation will become robust incorporating the learnings from recent events. The management is committed to ensure interests of all the stakeholders are protected and deliver on the near and long term growth agenda with unrelenting focus on governance.”
Distribution network
As of March 31, 2025, the Bank’s distribution network included 3,081 branches/ banking outlets and 3,027 onsite and offsite ATMs, as against 2,984 branches/ banking outlets and 2,956 onsite and offsite ATMs as of March 31, 2024. The client base stood at 41 million as on March 31, 2025.