IndusInd Bank Q4 results: What to expect from the private sector lender today

In the opening deals, the bank's stock was trading over 1% lower at ₹773.95 on the BSE.

The market participants and other stakeholders will look for the management's commentary on the road ahead, and what steps the bank is taking for growth and expansion.

For the December quarter (Q3 FY25), IndusInd Bank reported a 39% year-on-year (YoY) decline in its standalone net profit to ₹1,402.3 crore, compared to ₹2,301 crore logged in the year-ago period.

The drop in the bank’s net profit was on the back of a fall in its asset quality as Gross Non-Performing Assets (GNPAs) increased and the capital adequacy ratio decreased.

The bank’s net interest income (NII) also fell by 1.28% YoY to stand at ₹5,228.1 crore, compared to ₹5,295.6 crore in the third quarter of the financial year 2024-25.

IndusInd Bank: Asset Quality

IndusInd Bank witnessed a drop in its asset quality as its GNPAs rose 9.66% to ₹8,375.3 crore from ₹7,638.5 crore in the previous quarter.

Furthermore, the bank’s capital adequacy ratio shrunk to 16.46% as of December 31, 2024, in contrast to 17.86 % as of December 31, 2023.

“The Indian macro indicators suggest stability in economic activity levels after the slowdown in Q2. This was also reflected in the sharp recovery in the retail disbursements of the Bank. Consequently, the Bank’s loan book grew by 12% YoY. The Bank maintained momentum on retail deposits growing at 14% YoY and overall deposits growing at 11% YoY,” Sumant Kathpalia, the then Managing Director and CEO commented.

IndusInd Bank: Recent developments

Last week, the lender said its internal audit department (IAD) had found "unsubstantiated balances" of ₹595 crore in "other assets" of its balance sheet, and had also examined the roles of key employees in this lapse.

In a regulatory filing, IndusInd Bank said this balance was, later in January 2025, set off against corresponding balances appearing in "other liabilities" accounts.

It said following receipt of a whistleblower complaint, the IAD was asked by the Audit Committee of the Board to review transactions recorded in "other assets" and "other liabilities". This was in addition to the review of the Bank's MFI business, which the beleaguered lender had disclosed to the stock exchanges on April 22.

Earlier on April 22, IndusInd had said that as part of the process of finalisation of accounts, the bank's IAD was conducting a review of the bank's MFI business to examine certain concerns and it has engaged EY to assist the IAD.

The IAD submitted its report on May 8, 2025.

IndusInd said that the IAD found that a cumulative amount of ₹674 crore was incorrectly recorded as interest over three quarters of FY24-25, which was fully reversed as on January 10, 2025.

"The Board is taking necessary steps to strengthen internal controls, fix accountability of the persons responsible for these lapses and will take action as appropriate," IndusInd said.

In March, IndusInd Bank had reported accounting lapses in the derivative portfolio which were estimated to have an adverse impact of approximately 2.35% of the bank's net worth as of December 2024.

Following this, the bank appointed external agency PwC to assess the impact on the bank's balance sheet, lapses at various levels and suggest remedial action.

The agency in its report has quantified the negative impact of the above as of June 30, 2024, at ₹1,979 crore.

On April 29, CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned from the bank, following which IndusInd board appointed a Committee of Executives to oversee the operations of the bank, till a new MD & CEO assumes charge or a period of three months.

Meanwhile, the IndusInd Bank's board has also hired Grant Thornton to conduct a forensic audit into accounting lapses.

IndusInd Bank share price trend

In the pas six months, the stock price has declined 21%, while on a year-to-date (YTD) basis, shares have fallen 20%.