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Time of India
27-05-2025
- Business
- Time of India
IndusInd Bank shares in focus amid NFRA complaint over audit discrepancies
Shares of IndusInd Bank will be in focus on Tuesday following reports that the National Financial Reporting Authority (NFRA) has received a complaint highlighting audit lapses related to the bank's forex derivative portfolio. The complaint, lodged via the government's Centralised Public Grievance Redress and Monitoring System, has sparked a wider regulatory scrutiny. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like "무릎 시큰거리고 걷기 힘들어 하신다면… 이젠 집에서 편하게!" pt 더 읽기 Undo According to earlier ET reports, NFRA is consulting with the Reserve Bank of India ( RBI ) to decide whether to launch a formal probe into the bank's books. Additionally, the Securities and Exchange Board of India ( SEBI ) and the Institute of Chartered Accountants of India (ICAI) are also examining the matter for potential regulatory violations and accounting lapses. The complaint centres on discrepancies identified by IndusInd Bank itself during an internal review of its derivative portfolio. Live Events These irregularities, tied to transactions spanning over 7–8 years up to FY24, could result in a financial impact of nearly Rs 1,600 crore post-tax and Rs 2,100 crore pre-tax, with the bank earlier flagging a potential 2.35% hit on its net worth as of December 2024. Additionally, according to a report by NDTV Profit, J Sridharan, the executive vice chairman of Bharat Financial Inclusion, has resigned with immediate effect. Bharat Financial Inclusion serves as the microfinance subsidiary of IndusInd Bank. Further, two other officials responsible for handling loan data have been asked to leave. These exits come in the wake of findings that revealed significant accounting gaps in the microlending business. IndusInd Bank Q4 results IndusInd Bank reported a consolidated net loss of Rs 2,329 crore in its Q4FY25 versus a net profit of Rs 2,349 crore in the year ago period period amid losses in its derivatives segment. The private lender reported net interest income of Rs 3,048 crore in Q4FY25, which was down 43% YoY versus Rs 5,376 crore reported in the year ago period. The bank earned interest income of Rs 10,634 crore in the quarter under review, down 13% from Rs 12,199 crore reported in the corresponding quarter of the last financial year. Also read: EQT firm Sagility B.V. to offload up to Rs 2,671 crore stake in Sagility India via offer for sale IndusInd Bank share price performance Over the past one year, IndusInd Bank's stock has declined sharply by 44.50%. The year-to-date (YTD) performance shows a fall of 17.43%, while the six-month return is down by 20.73%. In the last three months alone, the stock has dropped 22.59%, and over the past month, it has slipped 2.68%. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
27-05-2025
- Business
- Economic Times
IndusInd Bank shares in focus amid NFRA complaint over audit discrepancies
Shares of IndusInd Bank will be in focus on Tuesday following reports that the National Financial Reporting Authority (NFRA) has received a complaint highlighting audit lapses related to the bank's forex derivative portfolio. ADVERTISEMENT The complaint, lodged via the government's Centralised Public Grievance Redress and Monitoring System, has sparked a wider regulatory scrutiny. According to earlier ET reports, NFRA is consulting with the Reserve Bank of India (RBI) to decide whether to launch a formal probe into the bank's books. Additionally, the Securities and Exchange Board of India (SEBI) and the Institute of Chartered Accountants of India (ICAI) are also examining the matter for potential regulatory violations and accounting complaint centres on discrepancies identified by IndusInd Bank itself during an internal review of its derivative irregularities, tied to transactions spanning over 7–8 years up to FY24, could result in a financial impact of nearly Rs 1,600 crore post-tax and Rs 2,100 crore pre-tax, with the bank earlier flagging a potential 2.35% hit on its net worth as of December 2024. ADVERTISEMENT Additionally, according to a report by NDTV Profit, J Sridharan, the executive vice chairman of Bharat Financial Inclusion, has resigned with immediate effect. Bharat Financial Inclusion serves as the microfinance subsidiary of IndusInd Bank. Further, two other officials responsible for handling loan data have been asked to leave. These exits come in the wake of findings that revealed significant accounting gaps in the microlending business. ADVERTISEMENT IndusInd Bank reported a consolidated net loss of Rs 2,329 crore in its Q4FY25 versus a net profit of Rs 2,349 crore in the year ago period period amid losses in its derivatives segment. ADVERTISEMENT The private lender reported net interest income of Rs 3,048 crore in Q4FY25, which was down 43% YoY versus Rs 5,376 crore reported in the year ago bank earned interest income of Rs 10,634 crore in the quarter under review, down 13% from Rs 12,199 crore reported in the corresponding quarter of the last financial year. Also read: EQT firm Sagility B.V. to offload up to Rs 2,671 crore stake in Sagility India via offer for sale ADVERTISEMENT Over the past one year, IndusInd Bank's stock has declined sharply by 44.50%. The year-to-date (YTD) performance shows a fall of 17.43%, while the six-month return is down by 20.73%. In the last three months alone, the stock has dropped 22.59%, and over the past month, it has slipped 2.68%. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Business Standard
22-05-2025
- Business
- Business Standard
IndusInd Bank reports dismal Q4 outcome
IndusInd Bank reported a standalone net loss of Rs 2,235.99 crore in Q4 FY25 as against a net profit of Rs 2,346.84 crore posted in Q4 FY24. Total income declined 22.83% year on year to Rs 11,342.65 crore in the quarter ended 31 March 2025. The banks financial results include the financial results of its wholly owned subsidiary, Bharat Financial Inclusion (BFIL), a business correspondent (BC) of the bank involved in originating small-ticket MFI loans for the bank, and IndusInd Marketing and Financial Services Private (IMFS), an associate of the bank. The private lenders reported consolidated net loss of Rs 11,342.65 crore in Q4 FY25 as against a net profit of Rs 2,349.15 crore in Q4 FY24. Operating expenses during the quarter were at Rs 4,248.04 crore, up 11.70% YoY. On the asset quality front, the bank's gross non-performing assets (NPAs) stood at Rs 11,046.39 crore as on 31 March 2025, as against Rs 6,693.38 crore as on 31 March 2024. The gross NPA were at 3.13% of gross advances as on 31 March 2025 as against 1.92% as on 31 March 2024. Net Non-Performing Assets were 0.95% of net advances as on 31 March 2025, compared to 0.57% as on 31 March 2024. The provision coverage ratio was consistent at 70% as at 31 March 2025. Provisions and contingencies (other than tax) for the year ended 31 March 2025 were Rs 7,136 crores, compared to Rs 3,885 crores for the corresponding quarter of previous year. The banks total deposits stood at Rs 4,10,862 crore as on 31 March 2025, registering a 6.83% increase from Rs 3,84,586 crore a year earlier. CASA deposits were at Rs 1,34,789 crore, with current account deposits at ₹40,764 crore and savings account deposits at Rs 94,025 crore. The CASA ratio stood at 32.8% as of March 31, 2025. Retail deposits, as per the Liquidity Coverage Ratio (LCR) framework, rose 9% year-on-year to Rs 1,85,180 crore from Rs 1,69,441 crore as on 31 March 2024. As of March 31, 2025, the bank's distribution network comprised 3,081 branches and banking outlets, along with 3,027 onsite and offsite ATMs, compared to 2,984 branches and 2,956 ATMs as of 31 March 2024. The bank's client base reached 41 million as of 31 March 2025. On a full-year basis, the companys net profit plunged 71.31% to Rs 2,575.54 crore, despite a 2.20% increase in total income, which rose to Rs 56,358.1 crore in FY25 compared to FY24. Net interest income for FY25 stood at Rs 19,031 crore, compared to Rs 20,616 crore in FY24. Fee and other income for FY25 stood at Rs 7,690 crore, compared to Rs 9,396 crore in FY24. The bank's pre-provision operating profit (PPOP) stood at Rs 3,601 crore in the December quarter, down 10.91% from Rs 4,042 crore reported in the same period a year ago. Sunil Mehta, the chairman of the board of directors, IndusInd Bank said, The Board and the Management acknowledge that the lapses happened have been unfortunate for an institution like our Bank. However, the Board along with the management has shown a strong resolve to address all the identified issues in timely and comprehensive manner. The Bank has a robust Networth and balance sheet even after absorbing impact from all the past anomalies. The learnings from these incidents will be imbibed to reinforce the governance and compliance culture of the organisation. The Bank at its core has profitable business model and it will pivot towards sustainable growth as we put this episode behind us. The Bank would like to express its gratitude to the regulators and particularly the RBI for its support and guidance in helping navigating these challenging times. Soumitra Sen and Anil Rao, the members of the committee of executives, IndusInd Bank said, The Banks core competencies remain strong which allows it to take these challenges in its stride. We are confident that the Bank will emerge stronger as the foundation will become robust incorporating the learnings from recent events. The management is committed to ensure interests of all the stakeholders are protected and deliver on the near and long term growth agenda with unrelenting focus on governance. We are thankful to the Board for their continued guidance and direction, all the employees who have ensured smooth customer service in current times, the regulators as well as shareholders in helping the franchise and we look forward to their continued support. IndusInd Bank was incorporated in 1994 as a commercial bank under the Banking Regulation Act, 1949. The Bank is publicly held and provides a wide range of banking products and financial services to corporate and retail clients besides undertaking treasury operations. The Bank operates in India including at the International Financial Service Centres in India. Shares of IndusInd Bank rose 0.67% to Rs 776.30 on the BSE.
