IndusInd Bank has reported its Q4 results, revealing a net loss of ₹2,329 crore—a stark contrast to the net profit of ₹2,349 crore it posted during the same period last year. This marks the first quarterly loss in two decades for the private sector lender, triggered primarily by significant hits in its derivatives segment and accounting lapses in its microfinance portfolio.
The bank disclosed that it incurred a loss of approximately ₹2,000 crore in its derivatives portfolio. On March 11, 2025, following the preliminary disclosure of these financial setbacks, the bank's stock plummeted by 26% in a single trading day, reflecting investor concerns over governance and financial health.
Further deepening the crisis, the bank's board revealed a suspected occurrence of fraud, involving certain employees. The issue primarily stemmed from an incorrect recording of ₹173 crore as fee income under the microfinance business, which spanned three quarters ending December 31, 2024. This amount was later reversed in the fourth quarter. The board has assured that necessary legal action will be taken to fix accountability.
Despite the setback, the management remains confident in the resilience of the bank’s balance sheet. According to their statement, the bank has fully absorbed the adverse financial impact and is committed to strengthening internal controls. The board emphasized its determination to maintain a high level of governance and compliance, while also working closely with the management team to identify and rectify the root causes of these lapses.
As part of its recovery efforts, the bank is progressing swiftly in its CEO selection process, following advice from the Reserve Bank of India (RBI) to submit proposals by June 30 for the new appointment. The board has confirmed it is at an advanced stage and expects to make confident recommendations to the RBI soon.
The bank has expressed its intent to start the financial year FY26 on a clean slate, vowing to address all identified issues and restore stakeholder confidence.
Disclaimer:
The information presented in this article is based on publicly available news and disclosures from IndusInd Bank and is intended for informational purposes only. Readers are advised to exercise their own judgment and seek professional financial advice before making any investment decisions.
