Latest news with #IndusindBank
News18
3 days ago
- Business
- News18
Indusind Bk Q1 net drops 72 pc; assures no more financial impact of past frauds
Agency: PTI Mumbai, Jul 28 (PTI) Private sector lender Indusind Bank on Monday reported a 72 per cent drop in its consolidated net profit for the June quarter to Rs 604 crore, and assured that there will not be any more financial impact of past frauds. The bank, which is reeling under a slew of issues stemming from alleged irregularities of the top management in recognising bad loans and trading reverses, had reported a net profit of Rs 2,171 crore in the year-ago period. It had reported a loss of Rs 2,329 crore in the preceding March quarter, and the interim management, which has taken over operations of the business after the resignation of leadership including then chief executive Sumant Kathpalia, had said that all the possible impacts are recognised. Total income dropped to Rs 14,420.80 crore in the April-June quarter of FY26 compared to Rs 14,988.38 crore in the year-ago period. IndusInd Bank Chairman Sunil Mehta said the bank has delivered 'clean and profitable" results in the June quarter, marking a 'robust recovery" from the March quarter. 'We have delivered Q1 results without any carry over of the prior period irregularities. Financial impact of legacy issues is behind us," Mehta told analysts over a call. There was no impact of the legacy issues in the first quarter results as well, he said, adding that the interim management is working to restore the lost ground so that the entity can perform to its potential. Time was spent by the management in resolving the concerns on the microfinance and the treasury side which had led it to admit fraud as well, he said, specifying that it includes upping governance and transparency, and also improving board oversight on the MFI side, while on the treasury front, it has upped the system and stopped internal deals. The bank is also progressing well on the appointment of a full-time chief executive and awaiting regulatory approval on the candidates it has sent, he said, adding that efforts to build a senior management team from both the internal talent of over 45,000 people and external ones, is also on simultaneously. The board has also outlined a five-point strategy for bettering the performance going ahead, which includes reducing deposit rate offerings, pulling away from low margin business and stringent cost management, he said. Mehta said the bank is planning to more than halve the overall operating expenses growth to single digits from the 20 per cent level it has witnessed in each of the last five years. Apart from this, the incoming CEO will come out with a detailed strategic roadmap. During the reporting quarter, the lender's core net interest income also declined to Rs 4,640 crore from Rs 5,408 crore a year ago. The advances de-grew 4 per cent on year, and the margins were lower by 0.79 per cent on-year. Deposits de-grew 3 per cent as it shed the higher-cost wholesale or bulk deposits. Decline in fee and other income was relatively limited, with the overall number dropping to Rs 2,157 crore from Rs 2,442 crore in the year-ago period. The gross non-performing assets ratio for the lender increased to 3.64 per cent in June against 3.13 per cent in March, but the provisions declined on-quarter to Rs 1,760 crore from Rs 2,522 crore. The fresh slippages nearly halved to Rs 2,567 crore on-quarter, and included Rs 2,322 crore of consumer bank. The management said the bank continues to be cautious on the microfinance business, and does not expect growth till Q3 of FY26. However, unlike its larger rival Kotak Mahindra Bank, it does not see any stress in the construction vehicles business and will be working towards growing it as the slippages will be lower in FY26 than the fiscal-ago period. The overall capital adequacy of the lender stood at 16.63 per cent as of June 30, and included a core buffer of 15.48 per cent, and the management said they have not heard any progress on the promoters' move to increase stake. Indusind Bank shares closed 2.62 per cent down at Rs 802.15 on BSE ahead of the results announcement, as against a 0.70 per cent correction on the benchmark Sensex. PTI AA MR (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: July 28, 2025, 20:15 IST News agency-feeds Indusind Bk Q1 net drops 72 pc; assures no more financial impact of past frauds Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Business Standard
3 days ago
- Business
- Business Standard
Indusind Bank Q1 PAT drops 68% YoY to Rs 684 cr
Indusind Bank reported a 68.21% decline in standalone net profit to Rs 684.25 crore on 3.79% fall in total income to Rs 14,420.12 crore in Q1 FY26 over Q1 FY25. Profit from ordinary activities before tax dropped 68.22% YoY to Rs 914.38 crore in Q1 June 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 loans for the Bank and IndusInd Marketing and Financial Services (IMFS), an associate of the Bank. The bank reported a 72.17% decline in consolidated net profit to Rs 604.07 crore on 3.79% fall in total income to Rs 14,420.80 crore in Q1 FY26 over Q1 FY25. Net interest income (NII) tumbled 17.53% to Rs 4,460 in Q1 FY26 compared with Rs 5,408 crore posted in same quarter last year. Net interest margin (NIM) stood at Rs 3.46% in Q1 FY26 as against 4.25% in Q1 FY25. The banks deposits stood at Rs 3,97,144 crore as on 30th June 2025, registering the de-growth of 0.34% against Rs 3,98,513 crore as on 30th June 2024. CASA deposits were at Rs 1,25,006 crore, with current account deposits at Rs 33,892 crore and savings account deposits at Rs 91,113 crore. Advances were Rs 3,33,694 crore as of June 30, 2025, as against Rs 3,47,898 crore as on 30th June 2024. Gross NPA were at 3.64% as on 30th June 2025, as against 2.02% as on 30th June 2024. Gross NPA stood at Rs 12,480.56 crore as on 30th June 2025 as against 7,126.80 crore as on 30th June 2024. Net NPA stood at Rs 3,721.52 crore as on 30th June 2025 compared with Rs 2,095.47 crore as on 30th June 2024. The Banks total capital adequacy ratio (CRAR) as per Basel III guidelines (excluding Q1 profits) stood at 16.63% as on June 30, 2025, as compared to 17.04% as on June 30, 2024. Tier 1 CRAR (excluding Q1 profits) was at 15.48% as on June 30, 2025, compared to 15.64% as on June 30, 2024. As of June 30, 2025, the Banks distribution network included 3,110 branches/ Banking outlets and 3,052 onsite and offsite ATMs, as against 3,013 branches/banking outlets and 2,988 onsite and offsite ATMs, as of June 30, 2024. The client base stood at approximately 42 million as on June 30, 2025. Sunil Mehta, the chairman of the board of directors, IndusInd Bank said: "The Bank has delivered clean and profitable Q1 results, marking a robust recovery from the challenges of the previous quarter. Leadership transition is progressing well, with our final recommendations being submitted to the regulator. The Board remains confident of moving forward as per planned timelines. The committee of executives has ensured seamless continuity and effective execution during this phase. The Bank has taken decisive action on legacy issues, strengthened governance, and enhanced operational controls The Bank is also actively working to integrate its diverse business lines under the One IndusInd approach, unlocking synergies and delivering a unified banking experience to our customers. Commenting on the performance, Soumitra Sen and Anil Rao, the members of the committee of executives, IndusInd Bank said: The Banks Q1 performance reflects the resilience of our core businesses and financial transparency. We returned to profitability with a net profit of Rs 604 crore, supported by steady recovery in core businesses and calibrated actions on cost optimization. Our capital adequacy remains strong with CRAR at 16.63% (excluding Q1 profits), reflecting a solid balance sheet and foundation. Our focus remains on unlocking. profitability, enhancing operational efficiency, and deepening stakeholder trust.
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Business Standard
3 days ago
- Business
- Business Standard
IndusInd Bank Q1 profit drops 72% to ₹604 crore; NII falls to ₹4,640 crore
Private sector lender Indusind Bank on Monday reported a 72 per cent drop in its consolidated net profit for the June quarter at Rs 604 crore. Indusind Bank, which is reeling under a slew of issues stemming from alleged irregularities of the management in recognising bad loans and trading reverses, had reported a net profit of Rs 2,171 crore in the year-ago period. It had reported a loss of Rs 2,329 crore in the preceding March quarter, and the interim management, which has taken over operations of the business after the resignation of leadership including then chief executive Sumant Kathpalia, had said that all the possible impacts are recognised. Total income dropped to Rs 14,420.80 crore in the April-June quarter of FY26 compared to Rs 14,988.38 crore in the year-ago period. The lender's core net interest income also declined to Rs 4,640 crore during the reporting quarter against Rs 5,408 crore. Decline in fee and other income was relatively limited, with the overall number dropping to Rs 2,157 crore from Rs 2,442 crore in the year-ago period. The gross non-performing assets ratio for the lender increased to 3.64 per cent in June against 3.13 per cent in March, but the provisions declined on-quarter to Rs 1,760 crore from Rs 2,522 crore. IndusInd Bank Chairman Sunil Mehta said the bank has delivered "clean and profitable" results in the June quarter, marking a "robust recovery" from the March quarter. "The Committee of Executives has ensured seamless continuity and effective execution during this phase. The Bank has taken decisive action on legacy issues, strengthened governance, and enhanced operational controls," he said. The overall capital adequacy of the lender stood at 16.63 per cent as of June 30, and included a core buffer of 15.48 per cent. Indusind Bank shares closed 2.62 per cent down at Rs 802.15 on BSE ahead of the results announcement, as against a 0.70 per cent correction on the benchmark Sensex.
News18
3 days ago
- Business
- News18
Indusind Bank Q1 profit drops 72 pc to Rs 604 cr
Agency: PTI Mumbai, Jul 28 (PTI) Private sector lender Indusind Bank on Monday reported a 72 per cent drop in its consolidated net profit for the June quarter at Rs 604 crore. Indusind Bank, which is reeling under a slew of issues stemming from alleged irregularities of the management in recognising bad loans and trading reverses, had reported a net profit of Rs 2,171 crore in the year-ago period. It had reported a loss of Rs 2,329 crore in the preceding March quarter, and the interim management, which has taken over operations of the business after the resignation of leadership including then chief executive Sumant Kathpalia, had said that all the possible impacts are recognised. Total income dropped to Rs 14,420.80 crore in the April-June quarter of FY26 compared to Rs 14,988.38 crore in the year-ago period. The lender's core net interest income also declined to Rs 4,640 crore during the reporting quarter against Rs 5,408 crore. Decline in fee and other income was relatively limited, with the overall number dropping to Rs 2,157 crore from Rs 2,442 crore in the year-ago period. The gross non-performing assets ratio for the lender increased to 3.64 per cent in June against 3.13 per cent in March, but the provisions declined on-quarter to Rs 1,760 crore from Rs 2,522 crore. IndusInd Bank Chairman Sunil Mehta said the bank has delivered 'clean and profitable" results in the June quarter, marking a 'robust recovery" from the March quarter. 'The Committee of Executives has ensured seamless continuity and effective execution during this phase. The Bank has taken decisive action on legacy issues, strengthened governance, and enhanced operational controls," he said. The overall capital adequacy of the lender stood at 16.63 per cent as of June 30, and included a core buffer of 15.48 per cent. Indusind Bank shares closed 2.62 per cent down at Rs 802.15 on BSE ahead of the results announcement, as against a 0.70 per cent correction on the benchmark Sensex. PTI AA MR view comments First Published: July 28, 2025, 18:15 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
21-07-2025
- Business
- Mint
Bajaj Finance managing director Saha quits three months after appointment
Mumbai: Bajaj Finance Ltd managing director Anup Saha has quit citing 'personal reasons', just three months after his appointment, making longtime chief Rajeev Jain once again take over the reins at the non-bank financier. Saha, who had joined Bajaj Finance in 2017, was among the three names mentioned as contenders for the top job at private lender Indusind Bank, according to media reports. The bank has been looking for a chief executive since its former head quit following a debacle around accounting practices for its derivative portfolio. The other two names, reportedly submitted by Indusind Bank to the Reserve Bank of India (RBI) for approval, include soon-to-retire Axis Bank deputy managing director Rajiv Anand and Rahul Shukla, who is 'taking personal time off' from his role at HDFC Bank. Mint recently reported that while the regulator usually seeks names six months in advance as part of the approval process, given the circumstances, it could expedite its vetting. If appointed to head Indusind Bank, it would not be Saha's first role at a commercial bank. Prior to joining Bajaj Finance, Saha spent 14 years at ICICI Bank. He has led various businesses including credit cards, mortgages, auto loans and structured finance. Saha holds an engineering degree from IIT Kharagpur and an MBA from IIM Lucknow. Saha did not respond to a call and a text message seeking comment. In March, while announcing Saha's elevation as the managing director, Bajaj Finance had said that he 'ensures that Bajaj Finance remains at the forefront of the industry, consistently achieving shared success and benefiting all stakeholders'. In a regulatory filing on Monday, Bajaj Finance said, 'Consequent to the resignation Anup Kumar Saha and in the interest of continuity of management, the board, pursuant to the recommendation of nomination and remuneration committee of the company and the applicable provisions of the Companies Act, 2013, has, in addition to Rajeev Jain's existing powers and roles as executive vice-chairman of the company, vested him with the powers, roles and responsibilities of management of the company and re-designated him as vice-chairman and managing director of the company for the remainder of his term i.e. till 31 March 2028.' Jain, who joined Bajaj Finance as chief executive officer in 2007, went on to become the managing director in 2015. Before joining Bajaj, he worked with GE, American Express and the American International Group. He is considered to be the force behind transforming Bajaj Finance from a small auto finance business to a financial conglomerate. In March, the lender announced that he would become the vice-chairman in the capacity of an executive director.
