IndusInd Bank reported a net loss of ₹2,329 crore for the quarter ended March 2025 (Q4 FY25), a sharp reversal from a profit of ₹2,349 crore in the same quarter last year.
This major loss is in the context of a derivatives accounting shortfall that has taken an enormous toll on the bank's net value.
After an internal audit revealed imbalances in its derivatives portfolio, both Managing Director and CEO Sumant Kathpalia and Deputy CEO Arun Khurana stepped down.
The bank revealed that the overall negative effect on its profit and loss account due to these accounting matters was around ₹1,960 crore as of March 31, 2025.
IndusInd's Board is busy with CEO appointments and anticipates making final recommendations for submission to the Reserve Bank of India by June 30. The Board is also examining staff positions and responsibility associated with the irregularities in accordance with legal and internal codes of conduct.
In Q4 FY25, the interest income of the bank decreased 13% year-on-year to ₹10,634 crore. Net interest income reduced significantly by 43% year-on-year to ₹3,048 crore and by 42% sequentially.
But the bank is still in a sound liquidity position with an average Liquidity Coverage Ratio (LCR) for Q4 FY25 at 118% and a comfortable 139% during the first half of Q1 FY26.
Despite IndusInd reporting a quarter loss, it made a profit for the entire financial year 2024-25 of ₹2,575 crore.
Following recent developments, international rating agency Crisil has put the bank's long-term debt instruments such as ₹4,000 crore Tier II bonds and ₹1,500 crore infrastructure bonds 'Rating Watch with Negative Implications.'
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