IndusInd Bank Limited
IndusInd Bank Limited 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.
Key Business segments
- Retail Banking: 66% in H1 FY25 vs 60% in FY22
- Corporate Banking: 21% in H1 FY25 vs 23% in FY22
- Treasury: 13% in H1 FY25 vs 17% in FY22
Financial Summary
| Particulars | Mar-23 | Mar-24 | Mar-25 |
| Sales | 36,368 | 45,748 | 48,668 |
| Sales Growth % | 17.99% | 25.79% | 6.38% |
| Expenses | 15,525 | 17,638 | 23,101 |
| Operating Profit | 2,067 | 2,978 | -4,069 |
| OPM % | 6% | 7% | -8% |
| Net Profit | 7,390 | 8,950 | 2,643 |
| EPS in Rs | 95.24 | 114.99 | 33.92 |
Synopsis of Financials
- Net Interest Income at Rs.5,228 crores; NIM at 3.93%, down from 4.08% QoQ due to lower average balances and higher cost of funds.
- Non-Interest Income grew by 8% QoQ to Rs.2,355 crores, driven by vehicle and microfinance disbursements.
- Operating expenses moderated to single-digit growth of 9% YoY.
- Profit after tax grew by 5% QoQ to Rs.1,402 crores; RoA and RoE at 1.03% and 8.45% respectively.
- Capital Adequacy Ratios remain healthy with CET1 at 15.18% and CRAR at 16.46%.
Final Outlook
According to IndusInd Bank’s Q4 earnings report, there may have been internal fraud in its microfinance business, since Rs 172.58 crore was mistakenly reported as fee income for the fiscal year 2024–2025. Additionally, it stated that a total of Rs 670 crore related to MFI operations was mistakenly reported as interest during 9MFY25; this cash was completely refunded as of January 10, 2025. IndusInd Bank is expected to swing into a net loss of ₹759.4 crore in the quarter ended March 2025, as against a profit of ₹2,346.8 crore in the year-ago period, according to estimates by Elara Capital.
The bank’s net interest income (NII) – the difference between interest earned and interest paid – in Q4FY25, is estimated to drop 4.8% to ₹5,118 crore from ₹5,376.4 crore, year-on-year (YoY).
In addition, the bank’s “other assets” accounts contained unjustified balances totaling Rs 595 crore. In January 2025, these were deducted from matching amounts that showed up in “other liabilities” accounts. The bank had previously reported that accounting irregularities pertaining to internal derivative trades had a P&L effect of Rs 1,960 crore. According to analysts, IndusInd Bank also discussed how the incorrect classification of some microloans led to underprovisioning and the failure to recognize non-performing assets (NPAs) of Rs 1,885 crore. By acknowledging this amount in slippages, this was fixed in 4QFY25. Interest reversals totaling Rs 180 crore resulted from the total slippages in the MFI segment, which totaled Rs 3510 crore.
