IndusInd Bank Ltd — Recent Performance & Challenges

Q4 FY25 / Recent Results In Q4 FY25, the bank reported a sharp loss of about ₹2,329 crore. Its net interest income fell significantly — ~43 % down year-on-year to ~₹3,048 crore. Non-interest income also dropped steeply. Provisions and loan-loss provisions for the quarter surged, putting pressure on profitability. The bank’s operating profit before provisions was weak, and after provisions, it went into loss. Balance Sheet & Business Metrics As of Q4 FY25, loans stood at ~₹3,45,019 crore, showing modest growth year-on-year but a decline quarter-on-quarter. Deposits were ~₹4,10,862 crore, up ~7 % over the year. The bank’s CASA deposits were ~₹1,34,789 crore, though showing some downward pressure. Capital adequacy (CRAR) was ~16.24 %, with Tier-1 at ~15.10 %. Q1 FY26 (Early Signs) In Q1 FY26, IndusInd Bank swung back to profit, posting a PAT of ~₹604 crore. Net interest income in Q1 was ~₹4,640 crore, and net interest margin was ~3.46 %. The bank’s gross NPA rose to ~3.64 % and net NPA to ~1.12 %. The capital adequacy (CRAR) was ~16.63 % (excluding Q1 profits), and the bank maintained liquidity with LCR at ~141 %. Key Risks & Issues The bank has come under heavy scrutiny due to accounting lapses, particularly in its derivatives and microfinance portfolios. It disclosed a significant discrepancy in its derivatives accounting, which led to restatement and loss provisioning. There’s also an admitted misbooking of ~₹674 crore in interest income in the microfinance business, which was reversed later. These issues raise serious questions about governance. Outlook The bank is in a recovery mode — Q1 shows a return to profitability, which is positive. Its balance sheet remains relatively strong, with decent capital ratios and moderate leverage. Going forward, success will depend on restoring investor confidence, improving internal controls, resolving accounting issues, controlling costs, and regaining momentum in lending (especially retail/secured).