First quarterly loss for Indusind Bank in 19 years – Times of India

Mumbai: Indusind Bank reported a quarterly loss of RS 2,236 Crore for the three months ending on March 2025, with a net profit of RS 2,346 Crore in the same period a year earlier. It was the first quarterly loss of the bank since March 2006.This disclosure follows the abrupt outputs of his Chief Executive and his deputy last month after the bank had dug up widespread irregularities in its Deviensderivaten and microfinance sports folio. The bank managed to win RS 2,642 Crore for FY25, which was 70% lower than RS 8,950 Crore in the previous year.In the registrations to the stock market, the bank said that internal and external reviews revealed a new fraud in which RS 172.6 Crore was wrongly booked as income in the reimbursement income in its microfinance arm. Broader discrepancies include derived transactions, income recognition and the classification of assets and obligations. The board now suspects fraud involving senior employees and has said that it will submit complaints to enforcement agencies.Sunil Mehta, the chairman of the bank, told analysts that the accounting of internal derivatives was stopped from April 2024, after confirming irregularities by external reviewers. Additional audits found income incorrectly classified, loans wrongly categorized leading for a subdivision of RS 1,885 Crore and Saldi in “other assets” and “other obligations” Mist Substantiation. The bank has also incorrectly booked RS 760 Crore of interest income that should have been registered elsewhere.Mehta said that the board “will do what needs to be done and the appropriate process of the law would follow without fear or favor to guarantee accountability”. He said that all problems were properly identified, properly tackled and declared stakeholders, and the new CEO would start with a new slate.The legal audit for FY25, performed by MSK & Associates and Chokshi & Chokshi, reveals a damn litany of the past. One of the more serious findings was a depreciation of RS 1,960 crore in “accumulated notional profits” since FY2016 resulting from internal transactions mentioned by the auditors a “previous period item”. They also marked the reversal of cumulative interest and reimbursements income worth RS 846.4 Crore registered during the year.Auditors emphasized manual entries from several years that were graduated in the current year, for an amount of RS 595 Crore. More serious, they pointed to striking expired by former important management staff.