IndusInd Bank has revealed fresh discrepancies in its microfinance loans phase amounting to ₹1,886.2 crore, the place some loans have been wrongly categorised as ‘standard assets’ and subsequently supplied for within the present quarter. The correction of this discrepancy, amassed over fiscal 12 months 2025 (FY25), amongst different elements, hit the revenue and loss account by ₹1,969 crore, contributing to losses of over ₹2,300 crore within the quarter beneath evaluate (Q4 FY25).
In a separate alternate submitting, IndusInd Bank stated that “the Board suspects the occurrence of fraud against the Bank and the involvement therein of certain employees having a significant role in the accounting and financial reporting of the Bank. Accordingly, the Board has directed necessary steps be taken under applicable law (including reporting to regulatory authorities and investigative agencies) and to also fix accountability of all persons responsible for these lapses.”
Additionally, the financial institution revealed in its notes to accounts that incorrect entries within the microfinance portfolio, amounting to a cumulative curiosity revenue of ₹673.8 crore and a charge revenue of ₹172.6 crore, have been made. This reversal, web of provisions, hit the present quarter’s web curiosity revenue by ₹422.6 crore.
The financial institution’s gross Non-Performing Assets (NPA) ratio additionally elevated to three.13% within the reporting quarter, as in opposition to 1.92% in the identical interval final 12 months. Officials, chatting with analysts, attributed the microfinance slippage to 2 sub-segments, noting that “slippages accumulated in the OOD (overdue) book over the nine months has turned into NPA in this quarter.”
Worst quarter ever
IndusInd Bank posted a web loss of ₹2,329 crore within the fourth quarter of FY25, as in opposition to a ₹2,350 crore web revenue within the year-earlier interval, as amassed accounting discrepancies considerably impacted web curiosity incomes. This is prone to be the worst quarter ever for the personal financial institution.
A bunch of different incorrect accounting entries in phrases of working bills, provisions, and curiosity funds have been additionally revealed within the notes to accounts. Additionally, ₹760.8 crore in web curiosity revenue and one other ₹157 crore in provisions have been reclassified, contributing to the losses.
The financial institution’s Net Interest Income (NII) fell by 43% to ₹3,048 crore within the quarter beneath evaluate, in contrast with ₹5,376 crore within the corresponding interval of the earlier fiscal. The financial institution’s Net Interest Margin (NIM) additionally fell to 2.25% in Q4 FY25 from over 4% in the identical quarter final fiscal.
Published – May 22, 2025 02:20 am IST
