INDUSIND BANK LIMITED - Quarterly Result Update Q4'25

$INDUSINDBK Indusind Bank has recorded worst performance with net loss of Rs 2235.99 crore for the quarter ended March 2025 (Q4FY2025) as the bank made adjustments for significant accounting discrepancies relating to derivatives, microfinance book and other assets and liabilities. The bank has posted sharp 43% plunge in net interest income (NII). The Net Interest Margin (NIM) of the bank improved to 2.25% in Q4FY2025 compared to 4.26% in the corresponding quarter of previous year. On business front, the bank as has posted 4% growth in business with 1% yoy growth in loan book. The asset quality of the bank has deteriorated in Q4FY2025. Bank has substantially reduced the credit to deposit ratio to 83.9% at end March 2025 from 89.2% at end March 2024. CASA ratio of the bank has declined to 32.8% at end March 2025 from 37.9% at end March 2024. Accounting discrepancies: As disclosed on 10 March 2025, the bank written off notional profit of Rs 1959.98 crore from derivative accounting discrepancy. The bank noted incorrect recording of cumulative interest income of Rs 673.82 crore and fee income of Rs 172.58 crore in microfinance portfolio. Reversal of this incorrect recording (net of an interim provision of Rs 322.43 6 crore and actual interest income for this period of Rs 101.41 crore, has resulted in an adverse impact of Rs 422.56 crore during the quarter ended March 2025. The bank noted misclassification of certain microfinance loans as standard assets` along with accrual of interest income. The bank corrected this classification resulting in an additional recognition of Non-Performing Advances aggregating to Rs 1885.19 crore and the bank provided for these Rs 95% aggregating to Rs 1791.08 crore. This provision together with a reversal of interest income of Rs 178.12 crore resulted in an adverse impact of Rs 1969.20 crore to the P&L account in Q4 and FY2025.