Mumbai-based private sector lender IndusInd Bank disclosed on March 10, 2025, that during an internal review of its derivative portfolio, discrepancies were identified in the accounts of Other Assets and Other Liabilities, following the implementation of the Reserve Bank of India’s (RBI) Master Direction on Classification, Valuation, and Operation of Investment Portfolio for Commercial Banks, effective April 2024.
The discrepancies were found to have an estimated adverse impact of approximately 2.35% of the bank’s net worth as of December 2024.
“The Bank has also, in parallel, appointed a reputed external agency to independently review and validate the internal findings. A final report of the external agency is awaited and basis which the Bank will appropriately consider any resultant impact in its financial statements,” IndusInd Bank said in a statement.
Despite the issue, the bank assured that its profitability and capital adequacy remain strong, and it is well-positioned to absorb the one-time impact.
In the third quarter, the company’s net profit declined 39% year-on-year to ₹1,402.3 crore from ₹2,301 crore in the same quarter last year. However, the figure surpassed CNBC-TV18’s poll estimate of ₹1,271 crore.
Net interest income (NII), a key measure of a bank’s profitability, fell 1.3% to ₹5,228.1 crore from ₹5,295.6 crore a year ago. The number also came in below expectations, with analysts forecasting NII at ₹5,343 crore.
As a percentage of total advances, the GNPA ratio stood at 2.25%, deteriorating from 2.11% in Q2 FY25. Net NPAs rose to ₹2,495.8 crore from ₹2,282 crore sequentially, with the NNPA ratio moving up to 0.68% from 0.64%.
Shares of IndusInd Bank ended 3.7% lower at ₹901.95 on Monday, after plunging to a 52-week low in intraday trading as multiple analysts downgraded the stock and cut its price targets as well.
