For the January–March period, Mumbai-based private lender IndusInd Bank Ltd. reported a net loss of ₹2,328 crore due to stress in the microfinance portfolio and previously documented accounting irregularities that negatively impacted the balance sheet. According to a CNBC-TV18 poll, the net loss was ₹514 crore. The findings were released on Wednesday, May 21, after market hours.
For the first time in two decades, IndusInd Bank has disclosed a quarterly financial loss. IndusInd Bank last declared a loss during the fourth quarter of the 2006 fiscal year, when Bhaskar Ghose was the bank's chief executive officer. The lender has only ever reported a loss once in its trading existence, and that was in March 2001.
IndusInd's Net Interest Income (NII) or core income declined by 43.4% from the same quarter last year to ₹3,048 crore, which is lower with the CNBC-TV18 poll of ₹4,762.4 crore.
Asset quality for the lender deteriorated on a sequential basis, with Gross NPA at 3.13% from 2.25% in the December quarter, while net NPA for the quarter stood at 0.95% from 0.68% in the previous quarter.
In a separate filing, IndusInd Bank stated that the Internal Audit Department submitted a report on May 20, where an amount of ₹172.58 crore was incorrectly recorded as fee income in the Microfinance business over three quarters ending December 31, 2024 and was reversed in the fourth quarter.
IndusInd Bank's advances grew by 1.3% during the January-March period on a year-on-year basis, which was the weakest growth in 17 quarters. On the sequential basis, loan growth declined by 5.2%, which was the biggest decline in 37 quarters or more.
Deposits grew by 6.8% during the March quarter, in comparison to the year-ago period to ₹4.11 lakh crore. This was the weakest deposit growth reported by the lender in the last 19 quarters.
