Source: CNBCTV18
Soumitra Sen, Head – Consumer Banking & Marketing at IndusInd Bank, said the lender maintained stable market share across commercial vehicles, construction equipment and passenger cars. “Asset quality trends have been improving since Q3 after a weak first half,” he noted, adding that all vehicle segments except tractors saw a decline in gross slippages.
The vehicle finance restructured book continued to shrink, reflecting better repayment trends. Meanwhile, the Bharat Financial loan book—IndusInd’s microfinance arm—was down 2% sequentially and 15% on a year-on-year basis. Sen acknowledged that while the microfinance business showed signs of stabilisation in Q4, the bank adopted a cautious approach to disbursements in this segment.
The bank has implemented MFIN regulatory guardrails effective April 1, 2025, to tighten operational discipline in microfinance. On regional recovery, Sen said, “Karnataka MFI operations are steadily getting back to normalcy.”
In the corporate lending segment, the bank opted to let go of some exposures to manage near-term liquidity. This led to a 6% year-on-year decline in the corporate loan book. “This was a practical decision keeping short-term objectives in mind,” Sen said.
All financial impacts from the irregularities have been fully accounted for in the FY25 results. “Our approach is to start FY26 on a clean slate,” Mehta stated. Despite the accounting shocks, the bank said its balance sheet remains robust with a capital adequacy ratio of 16.24%, provisioning coverage ratio at 70%, and average LCR at 118%, supported by ₹39,600 crore in excess liquidity.
The board has also begun the process of identifying a new CEO, with the RBI requiring a shortlist by June 30.
The board said it is working with management and external advisors to plug system lapses and tighten internal controls. Statutory auditors conducted substantive checks in light of the derivative accounting issue.
“We strongly believe these extra steps should help avoid such incidents in the future,” Mehta said. The bank is taking a serious view of governance culture and accountability.
The bank said that incorrect classification of ₹760 crore as interest income instead of other income was identified during reviews of its microfinance portfolio. Mehta said reviews found fee and interest income had been misreported during the first three quarters of FY25.
“The board suspects the occurrence of fraud against the bank and the involvement of certain employees in accounting and reporting,” he said. Necessary steps, including reporting to regulators and investigative agencies, have been initiated.
IndusInd Bank Chairman Sunil Mehta opened the Q4 earnings call, acknowledging the recent governance issues that have rocked the bank.
“Given recent developments, it was appropriate for me to address the issue,” Mehta said. He noted that several material events have occurred since March and added, “It is painful to see such developments at our own bank.”
Mehta clarified that the board had not been informed of key discrepancies — even at the time of approving relevant financial results.
IndusInd Bank misses Street
YoY
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– Revenue from Operations increased by 17.3%
– Capacity increased by 13.1%
– Passengers increased by 11.1%
– Yield increased by 1.3% to INR 5.15
– Load factor was 86.0%
InterGlobe Aviation Q4 earnings
The board recommended a dividend of ₹10 per equity share of face value of ₹10. Record date for the said dividend is yet to be announced. This will be subject to approval of the shareholders of the company at the ensuing Annual General Meeting (AGM).
Shares of Interglobe Aviation settled 0.27% higher at ₹5,456.50. The stock has climbed nearly 20% so far in 2025. More deets here
Pieter Elbers, CEO of IndiGo on Pak airspace closure impact
Flights to 2 international destinations Tashkent & Almaty cancelled
Flight time for 30 international flights increased by 20 minutes
On bonus to employees:
Yet to communicate internally about the bonus
On grounded planes:
Aircraft on ground down to 40s
– Net Profit up 40.5% At ₹123.2 Cr Vs ₹87.7 Cr (YoY)
– Revenue up 15.2% At ₹1,052 Cr Vs ₹913.5 Cr (YoY)
– EBITDA up 46.1% At ₹262.6 Cr Vs ₹179.8 Cr (YoY)
– Margin At 25% Vs 19.7% (YoY)
– Net Profit at ₹74.3 Cr Vs ₹21.5 Cr (YoY)
– Revenue Up 5.3% at ₹809 Cr Vs ₹768.4 Cr (YoY)
– EBITDA Up 76.9% at ₹186.6 Cr Vs ₹105.5 Cr (YoY)
– Margin at 23% Vs 13.7% (YoY)
– Net Profit Down 7.5% at ₹266.2 Cr Vs ₹287.9 Cr (YoY)
– Revenue Up 19.4% at ₹4,528.3 Cr Vs ₹3,794 Cr (YoY)
– EBITDA Up 11.1% at ₹526.8 Cr Vs ₹474.3 Cr (YoY)
– Margin at 11.6% Vs 12.5% (YoY)
– Net Profit At ₹233.3 Cr Vs ₹81 Cr (YoY)
– Revenue Up 22.5% at ₹622.3 Cr Vs ₹508 Cr (YoY)
– EBITDA Up 28.3% at ₹560.4 Cr Vs ₹436.7 Cr (YoY)
– Margin at 90% Vs 86% (YoY)
Shares of Trident Ltd., the producer of yarn, chemicals, textiles and paper, surged as much as 16% on Wednesday, May 21, in response to their March quarter results. The company’s net profit more than doubled from last year on a consolidated basis to ₹133.2 crore from ₹56.6 crore last year. Read here
– Net Profit At ₹133.2 Cr Vs ₹56.6 Cr (YoY)
– Revenue Up 10.8% At ₹1,864.3 Cr Vs ₹1,682.2 Cr (YoY)
– EBITDA Up 19.3% At ₹245 Cr Vs ₹205 Cr (YoY)
– Margin At 13.14% Vs 12.20% (YoY)
Shares of Rail Vikas Nigam Ltd., the railway PSU, were trading 1% lower, ahead of their March quarter (Q4FY25) earnings on Wednesday, May 21. The stock has declined in the last two trading sessions.
Shares of Interglobe Aviation Ltd., parent company of India’s largest airline by market share, IndiGo, are trading flat, ahead of their March quarter earnings on Wednesday, May 21. Read here
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