Crisis-hit IndusInd Bank has reported a net loss of ₹2,329 crore in the fourth quarter of FY25, driven by a 2.65-fold increase in provisions to account for derivative losses identified by the Reserve Bank of India (RBI). IndusInd Bank had incurred Rs 1,960 crore derivative losses due to accounting discrepancies.
In a statement, the bank said it has “appropriately accounted for and reflected the impact [of the derivative losses] while finalising the results for the quarter and full year ended March 31, 2025.” The bank added that its financials now present a “full and fair representation of all concerns brought to its attention.”
Despite the Q4 setback, IndusInd reported a net profit of ₹2,575 crore for the full year of FY25. Net interest income (NII) for FY25 stood at ₹19,031 crore, down from ₹20,616 crore in FY24.
The bank asserted that its balance sheet remains healthy even after absorbing the impact of derivative losses. Its Capital Adequacy Ratio stood at 16.24%, Provision Coverage Ratio at 70%, and average Liquidity Coverage Ratio (LCR) at 118%, with excess liquidity of ₹39,600 crore. The bank’s net worth rose to ₹62,532 crore in Q4FY25, compared to ₹61,445 crore in Q4FY24.
However, asset quality showed signs of stress. Gross non-performing assets (GNPA) rose to 3.13% of gross advances as of March 31, 2025, up from 2.25% as of December 31, 2024. Net NPAs increased to 0.95% from 0.68% during the same period.
Meanwhile, the bank said on Wednesday that the Board has initiated the process of identifying potential CEO candidates and is making “speedy progress.” The RBI has directed the bank to submit its proposal for a new CEO by June 30, 2025. IndusInd said it is in the advanced stages of the selection process and expects to submit its recommendation well ahead of the deadline.
“In the interim, the Committee of Executives (CoE), with members individually having over 30 years of experience, is overseeing the bank’s operations under the guidance of an Oversight Committee of the Board,” the bank said.
The Board is also in the process of assessing roles and responsibilities and fixing staff accountability for all identified irregularities, in line with applicable laws and the bank’s internal code of conduct.