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2d ago

IndusInd Bank Reports ₹22.36 Billion Loss as Fraud Probes Deepen

Accounting lapses and suspected employee fraud lead to the bank's first quarterly loss in nearly two decades, with leadership changes and regulatory scrutiny underway.

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Indusind Bank | Image: Shutterstock
'Stable': RBI's Big Relief For IndusInd Bank Investors & Depositors | Image: Republic
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Overview

  • IndusInd Bank disclosed a standalone net loss of ₹22.36 billion for Q4 FY25, its first quarterly loss in nearly 20 years, after uncovering major accounting discrepancies.
  • The bank's board suspects fraud involving senior employees in accounting and financial reporting, with investigations ongoing and regulatory authorities informed.
  • Incorrect accounting of derivatives and misreported microfinance income resulted in hits of ₹1,960 crore and ₹684 crore, respectively, impacting the bank's financials.
  • Top executives, including CEO Sumant Kathpalia and Deputy CEO Arun Khurana, resigned in April, with an interim committee managing operations as the RBI demands CEO nominations by June 30.
  • Gross non-performing assets rose to 3.13%, reflecting corrected accounting and stressed loans, while provisions for the quarter surged to ₹2,522 crore.