IndusInd Bank Posts Quarterly Loss; Focuses on Strengthening Balance Sheet

IndusInd Bank has reported a net loss of ₹2,328.92 crore for the fourth quarter of FY25, marking its first quarterly loss in 20 years and a sharp reversal from a net profit of ₹2,349 crore in the same period last year. The disappointing results come in the wake of significant accounting discrepancies, multiple audits, and top-level resignations.

 

Key Highlights:

 

Gross Non-Performing Assets (NPA) surged to 3.13% of gross advances as of March 31, 2025, compared to 1.92% a year earlier, reflecting a substantial deterioration in asset quality.

 

Provisions and contingencies for the quarter soared to ₹2,417 crore, nearly triple the ₹899 crore set aside in Q4 FY24, as the bank accounted for losses in its derivatives portfolio and errors in its microfinance book.

 

The net interest income (NII) for Q4 stood at ₹3,048.3 crore, down 43% year-on-year, indicating pressure on the bank’s core lending business.

 

The bank’s net NPA ratio also rose to 0.95% from 0.57% last year, while the provision coverage ratio remained steady at 70%.

 

IndusInd Bank’s board flagged suspected fraud involving certain employees and has initiated necessary legal and regulatory actions.

 

Despite the Q4 setback, the bank reported a full-year net profit of ₹2,575 crore for FY25, but this was down 71% from the previous year.

 

The management emphasized that the balance sheet remains healthy, with a capital adequacy ratio of 16.24% and comfortable liquidity, aiming to “start FY26 on a clean slate.”

 

Source: The Hindu Business Line, Financial Express, Business Today