During Thursday’s trading session, the shares of a private sector bank offering microfinance, personal loans, advanced digital banking facilities, and other financial services declined by nearly 6 percent on BSE. However, the stock recovered from the early losses during the session, despite the company having reported a loss for Q4 FY25.
With a market cap of Rs. 60,213 crores, at 12:45 p.m., the shares of IndusInd Bank Limited were trading in the green at Rs. 772.9 on BSE, up by nearly 0.3 percent, compared to its previous closing price of Rs. 771.1. The stock has delivered negative returns of over 45 percent in one year, and has fallen by around 2 percent in the last one month.
What’s the News
For Q4 FY25, IndusInd Bank reported a net interest income (NII) of Rs. 3,048 crores, reflecting a decline of around 42 percent QoQ from Rs. 5,228 crores in Q3 FY25, and a year-on-year fall of around 43 percent from Rs. 5,376 crores in Q4 FY24. Net Interest Margin (NIM) contracted to 2.25 percent in Q4 FY25, down from 3.93 percent in Q3 FY25 and 4.26 percent in Q4 FY24.
The bank reported a negative operating profit of Rs. 491 crores for the latest quarter, reflecting a decline of around 114 percent QoQ from Rs. 3,601 crores in Q3 FY25, and a year-on-year fall of around 112 percent from Rs. 4,081 crores in Q4 FY24.
Further, the consolidated net loss for Q4 FY25 stood at Rs. 2,329 crores, reversing from a profit of Rs. 1,402 crores in Q3 FY25 and net profit of Rs. 2,349 crores in Q4 FY24. Despite the loss in the fourth quarter, the bank remained profitable on a full-year basis, recording a net profit of Rs. 2,575 crore for FY25.
The Gross Non-performing Asset (NPA) stood at 3.13 percent as of Q4 FY25, up from 2.25 percent in Q3 FY25 and 1.92 percent in Q4 FY24. Similarly, the Net NPA ratio rose to 0.95 percent, as compared to 0.68 percent in the previous quarter and 0.57 percent in the corresponding quarter last year. Total expenditure, including interest expenses and operating expenses, increased to Rs. 45,696 crores in FY25, compared to Rs. 39,280 crores in FY24.
This quarterly result marks the bank’s first financial disclosure following the revelation of major accounting discrepancies and has been under scrutiny due to multiple audits and top-level resignations.
Management Comments
The management addressed recent concerns through internal and independent external reviews, stating that the financial statements reflect all the irregularities that were brought to the Board’s attention since March 2025. The Board has initiated the process of identifying potential candidates for the CEO position and is reportedly making swift progress in this regard.
According to the bank’s chairman, Sunil Mehta, the financial impact of all identified issues has been fully taken in the audited financial statements for FY25. He emphasised that the bank aims to begin FY26 with a clean slate, free from any past issues.
The bank also disclosed that it suspected fraud had occurred against the bank, involving certain employees who played significant roles in accounting and financial reporting.
Findings from the investigations and review reports indicate the involvement of senior bank officials, including former Key Management Personnel (KMP), in overriding key internal controls across relevant operational areas. These individuals allegedly concealed, from the Board and the statutory auditors, the wrongful accounting practices adopted over such period.
Based on an evaluation of the investigation findings, particularly the likely involvement of senior management—the bank has reason to believe that suspected offences involving fraud may have occurred.
Written by Shivani Singh
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