New Delhi/Mumbai, May 21 (PTI) Fraud-Hit IndusInd Bank on Wednesday reported a loss of Rs 2,329 crore for the March quarter, its worst performance, as the interim management opted to go for a deep-clean practice beyond recognizing the impact of wrong accounting practices.
Latest slippery increased to Rs 5,014 crore, largely due to the microfinance book, where incorrectly classified tension of Rs 1,800-crores was detected and reported as gross non-performing property, and some tension in the two-wheeler segment.
With the wrong recognition of derived trades in the last two years, with the revelations of March 10 about a potential hit for net worth, the Hinduzas-transmitted lender has been provoked in the last two months, and has also seen allegations of Chief Executive Officer Katpalia and his deputy Arun Khurana.
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In the March quarter, the bank influenced all the irregularities brought in the notice, including a hit of Rs 1,960 crore from the wrong recognition of the derivative trades, a cumulative interest income of Rs 674 crore due to wrong accounting, revealing a fraud of Rs 172 crore, was disclosed, which was a type of fraud, which was a type of. In the past, as “other assets” and “other liabilities”, and also recognized high slippery.
Its management, which is now under the leadership of veteran banker Sunil Mehta in a non-functional role, confirmed that all deficiencies have been taken on the board and demanded to assure that there will be no problem in the future as it tells the bank about “rebellion”.
Mehta said that based on the review done, all issues have been duly identified, addressed and disclosed to all stakeholders.
Mehta said at a post-regulats conference with analysts, “Whatever issues we have made financial impact has already been made in the financial year 2024-25,” a post-resignation conference with analysts states that it starts from FY 26 with a clean slate. The bank stopped its practice of interacting with reporters.
He said that it is “unfortunate and painful” to see laps in governance, and confirmed the board’s resolve in addressing all governance-related discrepancies. The board was not informed about laps in the past, he said.
The process of identifying the successor of Kathpalia is in advanced stages, saying that the board is looking for a leader with a strong moral base. Accountability for all laps will be fixed, even the bank goes through the process of returning to business as usual, he said, the central government has been informed about the deficiencies.
The bank management insisted that it was once adjusted to the hit, which it had to be taken, the IndusInd bank franchise is strong and performs well on other parameters.
The latest slippery included Rs 4,794 crore from the consumer book, which saw the quality of the property of the microfinance and a decline in front of the two-wheeler loans. The bank also saw a big jump in the right-off for Rs 1,816 crore, as the quarter-first period against Rs 984 crore.
Overall, the ratio of gross non-performing assets up to 3.13 percent by 31 March, as compared to 2.25 percent in the quarter period and 1.92 percent in March 2024. In a period of the year, more than Rs 950 crore was doubled to double.
On the microfinance front, the management stated that slippery would also be elevated in FY 26, but things will move towards stabilization since the second half. Already, there have been reports of a better collection capacity and the crisis in Karnataka is also ending, he also said.
The main net interest income has fallen by 43 percent, which increased to Rs 3,048 crore in net interest margin to Rs 3,048 crore and increased by 2.25 percent and advances by 1 percent.
The corporate loan book declined by 16 per cent, which increased to Rs 1.43 lakh crore on the quarter, and the management explained as a strategic call to maintain liquidity buffers.
Other income declined by 72 percent during the January-March period.
Moving forward, the bank will focus on safe consumers and small business loans, and will take a measured stance on corporate loans, the management said.
Unlike the apprehensions, the accumulation has stabilized, although the share of low -cost current and savings accounts declined by 33 percent during the quarter.
The management said the bank is capable of maintaining its liquidity buffers, with the liquidity coverage ratio of about 139 percent till Tuesday. For 2024-25, IndusInd Bank recorded a decline of more than 71 percent in net profit for Rs 2,576 crore as against Rs 8,977 crore in FY14. The bank’s net interest income for FY25 was Rs 19,031 crore in FY 24 against Rs 20,616 crore.
The provision during FY’25 increased to Rs 7,136 crore, which increased from Rs 3,885 crore in FY’24.
The bank’s overall capital adequacy was 16.24 percent, which was comfortable 15.10 percent with the core buffer, due to which the management insisted that it had resources to grow.
IndusInd Bank Scrip on BSE on Wednesday closed down 1.39 percent for Rs 771.10, as compared to a profit of 0.51 percent on the benchmark. PTI AA JD MBI Sri Sri
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