What Caused IndusInd Bank Financial Statements’ Q4 Loss?
IndusInd Bank financial statements for Q4 FY25, reported on May 22, 2025, showed a Rs 2,329 crore loss due to accounting irregularities in derivatives and microfinance (MFI) operations.
A Rs 1,960 crore reversal in other income stemmed from derivative discrepancies, while MFI audits revealed Rs 1,885 crore in misclassified loans, causing Rs 3,509 crore in slippages.
This led to reduced margins and higher non-performing assets.
Despite the loss, the bank’s balance sheet remains robust, with a 16.24% capital adequacy ratio, 70% provision coverage, and Rs 39,600 crore in excess liquidity.
While all irregularities are accounted for, MFI stress and CEO uncertainty pose risks.
Trading at 0.9x FY25 book value, the stock suits long-term investors, but near-term rerating is unlikely.
Read More at Moneycontrol
