While IndusInd Bank has come under intense scrutiny amid mounting financial irregularities and a sharp downturn in performance, the bank reported a staggering consolidated net loss of ₹2,329 crore for the January–March quarter (Q4FY25), a dramatic reversal from the net profit of ₹2,349 crore posted in the same period last year, as per its exchange filing. Additionally, net interest income (NII) plunged 43% year-on-year to ₹3,048 crore from ₹5,376 crore, signalling deeper operational stress.
However, its promoter Ashok Hinduja stands tall in support of the private sector lender. “I express my continued, unequivocal trust in the Chairman & Board of Directors of the bank for their appropriate, swift actions in order to address discrepancies and attendant areas of concern,” says Ashok P. Hinduja, Chairman, IndusInd International Holdings Limited, promoter of IndusInd Bank, post Q4/FY 25 results announcement by IndusInd Bank.
“This would lead to higher standards of transparency and governance, leading to rebuilding trust in the bank. The coordinated efforts of current management under the guidance and monitoring of the board and other stakeholders have ensured that the bank’s business remains healthy, with robust capital adequacy. The continued confidence of the customers in the bank shows their trust in the institution, which has always been upheld. This shall be a new dawn with a sanitised slate to regain the position the bank enjoyed for many decades,” he said.
“The stance of the regulator in addressing the issues in a very orderly manner with suitable guidance, as demonstrated by them in the past for the banking sector, is commendable. Though the capital adequacy of the bank is quite healthy, for business growth, should any further equity be required, IIHL, as the promoter of IBL, remains committed to supporting the bank, as it has done over the past 30 years,” Hinduja added.
Last week, the National Stock Exchange (NSE) requested an official explanation from IndusInd Bank after a media report highlighted an internal audit examining amid possible accounting issues. The report sparked concerns among investors, resulting in a fall in the bank’s stock value. The NSE’s move is intended to promote transparency amid rising market anxiety.
IndusInd Bank has since acknowledged accounting discrepancies amounting to ₹1,269 crore. The internal audit has led to corrective actions being initiated to address the identified issues.
The Reserve Bank of India (RBI) has also begun a separate inquiry into the suspected discrepancies in the bank’s financial records. The Securities and Exchange Board of India (Sebi) has also stepped in, investigating whether regulatory norms were breached. This comes after the bank indicated the likelihood of misconduct by a few employees directly involved in its accounting and financial disclosures.
Despite the unfolding crisis, Hinduja’s public backing could offer a stabilising signal to the markets, as the institution undertakes corrective steps and regulatory cooperation.
