IndusInd Bank Faces Financial and Governance Turmoil Amid Audit Probe

IndusInd Bank reported a substantial net loss of Rs 2,328.9 crore for the fourth quarter of FY'25, largely due to increased provisioning and reduced income. This financial blow follows a turbulent period marked by accounting abnormalities, fraud allegations within its microfinance portfolio, and incomplete balance sheet disclosures, prompting internal and external investigations.

The bank's interest income dropped sharply in the March quarter, declining by 13% to Rs 10,634 crore, compared to the same period in the previous fiscal year. Cumulatively, the bank's net profit for the entire 2024-25 fiscal year fell significantly by over 71% to Rs 2,576 crore. Provisions have more than doubled during this period, rising to Rs 7,136 crore.

In response to these issues, several top executives, including CEO Sumant Kathpalia and Deputy CEO Arun Khurana, resigned. An external audit by PwC assessed the negative financial impact and subsequent steps are being considered to enforce accountability and conduct thorough remedial actions. Meanwhile, the bank's shares saw a slight decline following these announcements.

(With inputs from agencies.)