The impact was seen across key financial metrics. The net interest margin was halved to 2.25%, but the return on assets and stocks were negative.
Indusind Bank’s key financial indicators became off-quilters after a 165% increase in its provisions and contingencies at 165% (Q4FY25) in the fourth quarter (quarter).
Even if India’s fifth largest private sector bank plunged to a net loss of 2,329 crore in Q4FY25 against its 25th quarter net income, the net profit of 2,349 crore and 2,522 crore (£950) ratio and net bad assets were negatively affected to reduce net profit of 2,522 crore (£950) to repay equity’s profit.
Net interest (NIM) fell from 4.26% on Q4FY24 to 2.25% on Q4FY25. Return on assets and stock return on assets were negative at 1.74% (1.90%) and 14.12% (15.23%).
Cost-income rates and net unemployed assets increased to 113.07% (48.23%) and 0.95% (0.57%).
Interestingly, the bank’s cash balance due to RBI jumped to 175%, reaching 51,006 crores (£18,561 crores), while the bank’s balance fell 54% to 8,369 crores (£18,347 crores).
The bank’s capital to risky assets ratio fell from 16.46% to 16.24%.
In addition to the already known accounting discrepancies, the bank’s auditors noted that its internal financial review required revisions during the quarter and year ending March 31, 2025, and identified other cases of revised incorrect accounting.
These include interest payments of 99.97 crores on certain borrowing equipment not recognized in previous profit and loss accounts and provisions of 133.25 crores on the balances of other assets that are not expected to be realized.
Released on May 21, 2025
