Private lender IndusInd Bank reported its first quarterly loss in 19 years, dragging its full-year net profit down to ₹2,575 crore in FY25 — placing it behind smaller peers such as Bandhan Bank and Federal Bank. In comparison, Federal Bank posted a net profit of ₹4,159 crore, while Bandhan Bank reported ₹2,745 crore for the same period.
For the March quarter of FY25, the Mumbai-based lender reported a net loss of ₹2,329 crore, compared to a net profit of ₹2,349 crore a year earlier. Analysts polled by CNBC-TV18 had estimated a much smaller loss of ₹514 crore for the quarter.
The steep loss stemmed from multiple accounting discrepancies that came to light over recent months. In April, the bank disclosed that ₹674 crore had been incorrectly recorded as interest income in its microfinance business over three quarters. On May 21, the bank revealed an additional ₹173 crore had been wrongly booked as fee income in the same segment, also over three quarters ending December 2024. Both amounts were reversed in Q4FY25.
These lapses came on top of a ₹1,960 crore discrepancy related to the bank’s derivatives portfolio, which had earlier prompted the resignation of CEO Sumant Kathpalia.
Additionally, an internal financial review uncovered further misstatements — including nearly ₹100 crore in interest payments on certain borrowing instruments that had not been recognised in earlier P&L accounts. The bank also made a provision of ₹133.25 crore for unrecoverable balances in ‘other assets’ and accounted for ₹206 crore in prior-period operating expenses, while reversing ₹126.75 crore of income recorded incorrectly in earlier periods.
“We are looking forward to rebuilding the bank. Our fundamentals are strong, and we aim to build a healthier balance sheet starting FY26,” said Sunil Mehta, Chairman of IndusInd Bank. “The management is working relentlessly to transform IndusInd into a strong, future-ready bank.”
Also read: IndusInd Bank board to submit CEO picks to RBI before June end
Despite the setback, IndusInd remains the fifth-largest private lender in India by loan book size, with advances of ₹3.5 lakh crore. By contrast, Federal Bank and Bandhan Bank reported loan books of ₹2.3 lakh crore and ₹1.3 lakh crore, respectively.
IndusInd’s net interest income (NII) declined 8% to ₹19,031 crore in FY25, while pre-provision operating profit (PPoP) fell 33% to ₹10,661 crore. Gross non-performing assets (GNPA) rose to 3.13% in March 2025, from 2.25% in December 2024.
Ahead of the results announcement, IndusInd Bank shares closed 2% lower at ₹769.95 on the NSE, taking its year-to-date decline to 20%. In comparison, the Nifty Bank index has gained 8.3% in the same period.