IndusInd Bank's Tumultuous Quarter: A Deep-Clean Exercise Amid Financial Struggles
IndusInd Bank reported a substantial Rs 2,329 crore loss in the March quarter, attributed to deep-clean efforts following fraudulent practices. Significant missteps included misclassification in the microfinance sector and incorrect accounting. Management emphasized future stability and accountability, foreseeing stabilization by the second half of FY26.
- Country:
- India
Facing a serious financial setback, IndusInd Bank posted a staggering Rs 2,329 crore loss for the March quarter on Wednesday. This comes as the bank undertakes a significant deep-clean to address accounting discrepancies and misclassified assets in critical segments.
The lender's woes deepened with fresh slippages totaling Rs 5,014 crore, primarily from the microfinance division, where a misclassified Rs 1,800-crore stress was acknowledged. High-profile resignations and tumult marked recent months, driven by allegations of insider trading and governance failures.
As measures to rectify past errors proceed, the bank's management, led by non-executive Sunil Mehta, assures stakeholders of future stability. Moving forward, IndusInd aims to reinforce its operational integrity while slowly restoring its financial health.
(With inputs from agencies.)
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