IndusInd Bank Q4 Results: Lender reports ₹2,329 crore loss on higher provisioning, lower income; FY25 profit tanks 71%

The private sector bank has been embroiled in accounting lapses, fraud in its microfinance portfolio, and balance sheet disclosures during the March quarter of FY'25, which triggered an internal audit review, top-level resignations, and a forensics probe.

The bank reported a consolidated net profit of ₹2,349.15 crore in the March quarter of 2023-24.

The lender has made a provisioning of ₹2,522 crore during the March quarter of FY25, up from ₹950 crore provisioning made in the corresponding quarter of the previous fiscal.

Its interest income during the quarter fell 13% to ₹10,634 crore from ₹12,199 crore seen in the March quarter of FY 24.

For the full 2024-25 fiscal year, IndusInd Bank reported over a 71% drop in net profit to ₹2,576 crore. In FY 24, the bank had a net profit of ₹8,977 crore.

Provisioning during FY25 rose to ₹7,136 crore from ₹3,885 crore in FY24.

"The bank is in the process of taking necessary steps to assess roles and responsibilities and fix accountability for persons involved in any of the lapses. The bank is fully committed towards taking these matters to their conclusion under applicable laws," IndusInd Bank said.

IndusInd Bank: Recent developments

Last week, the lender said its internal audit department (IAD) had found "unsubstantiated balances" of ₹595 crore in "other assets" of its balance sheet and had also examined the roles of key employees in this lapse.

In a regulatory filing, IndusInd Bank said this balance was, later in January 2025, set off against corresponding balances appearing in "other liabilities" accounts.

It said following receipt of a whistleblower complaint, the IAD was asked by the Audit Committee of the Board to review transactions recorded in "other assets" and "other liabilities". This was in addition to the review of the bank's MFI business, which the beleaguered lender had disclosed to the stock exchanges on April 22.

Earlier on April 22, IndusInd had said that as part of the process of finalisation of accounts, the bank's IAD was conducting a review of the bank's MFI business to examine certain concerns, and it had engaged EY to assist the IAD.

The IAD submitted its report on May 8, 2025.

IndusInd said that the IAD found that a cumulative amount of ₹674 crore was incorrectly recorded as interest over three quarters of FY24-25, which was fully reversed as of January 10, 2025.

"The Board is taking necessary steps to strengthen internal controls, fix accountability of the persons responsible for these lapses, and will take action as appropriate," IndusInd said.

In March, IndusInd Bank had reported accounting lapses in the derivative portfolio, which were estimated to have an adverse impact of approximately 2.35% of the bank's net worth as of December 2024.

Following this, the bank appointed the external agency PwC to assess the impact on the bank's balance sheet and lapses at various levels and suggest remedial action.

The agency, in its report, has quantified the negative impact of the above as of June 30, 2024, at ₹1,979 crore.

On April 29, CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned from the bank, following which the IndusInd board appointed a committee of executives to oversee the operations of the bank until a new MD & CEO assumes charge or a period of three months.

The results were declared after market hours on Wednesday. Shares of the lender settled at ₹766.80 apiece on the NSE, down 2%.