The problems for IndusInd Bank are far from over. The share price of IndusInd Bank plunged 5.7% to a low of Rs 725.80 in Thursday’s trade. This is after the company recorded a consolidated net loss of Rs 2,329 crore in Q4FY25. This is significantly higher than the estimated loss due to the accounting discrepancy that came to light around April 15. The stock has seen a series of downward spirals since then, and there have been key management exits after that, too.
However, the stock price of IndusInd Bank recovered soon to trade in the green, up 0.98% at Rs 777.50, at 9:40 AM.
IndusInd Bank: Accounting woes, Q4 disappointing
The bank reported a net interest income of Rs 3,048 crore in Q4FY25, down 43% year-on-year from Rs 5,376 crore reported in the corresponding quarter a year ago.
IndusInd Bank’s net interest margin in Q4FY25 stood at 2.25%, a decline of 201 bps YoY and 168 bps on a QoQ basis.
“The Bank has appropriately accounted for and reflected the impact of all discrepancies identified in these reports while finalising the financial results for the quarter/ twelve months ended March 31, 2025,” the lender said in a separate filing to the exchanges.
Accounting discrepancy impact
Following the incident of discrepancy, the bank’s managing director and CEO, Sumant Kathpalia, resigned. The brokerage firm Elara Securities raised concerns over uncertainty in leadership and potential financial implications given the hit to customer confidence. As the CEO resigned, the broker maintained its ‘Sell’ call on the stock.
IndusInd Bank Q3 earnings
The private lender’s net profit was down 39% YoY to Rs 1,402 in Q3FY25, compared with Rs 2,301 in Q3FY24. Its net interest income stood at Rs 5,228 crore, a slight decline of 1.27% YoY from Rs 5,295.6 crore in Q3 FY24. IndusInd Bank’s net interest margin (NIM) was 3.93% in Q3 FY25, down from 4.29% in Q3 FY24. The bank’s provisions came in at Rs 1,743.6 crore, higher than Rs 969.3 crore in Q3 FY24.
IndusInd Bank’s stock performance
The share price of IndusInd Bank has fallen 0.96% in the last five trading sessions. The stock has declined 2.6% in the past one month and erased investors’ wealth by 23% in the last six months. It took down investors’ money by more than 45% in the last one year.