IndusInd Bank shares climb 5% as RBI says accounting issues to be resolved soon

IndusInd Bank Ltd stocks climbed 5.32 percent during Friday’s trading, hitting a peak of Rs 845.85, following the Reserve Bank of India (RBI) stating that the current accounting problems would be settled “very soon.” Addressing the media after the announcement of the Monetary Policy Committee’s (MPC) rate cut, RBI Governor Sanjay Malhotra mentioned that the central bank is attentively observing the situation and anticipates a resolution soon.

The troubled private bank posted a consolidated net loss of Rs 2,328.92 crore for the January-March 2025 quarter, compared to a profit of Rs 2,349.08 crore in the same period of the previous fiscal year. The shares increased by 1.82 percent to Rs 785.10. At this price point, it has adjusted 19 percent on a year-to-date (YTD) basis.

Net interest income (NII) reached Rs 3,048.3 crore for the quarter ending March 2025, while provisions increased to Rs 2,522.08 crore in Q4 FY25. Consecutively, the lender’s gross non-performing asset (NPA) increased to 3.13 percent in Q4 FY25, up from 2.25 percent in the December 2024 quarter.

IndusInd, in its initial earnings report following the discovery of accounting irregularities, revealed a possible internal fraud of Rs 172.58 crore that was mistakenly noted as fee income for FY25.

Moreover, the bank highlighted that a total of Rs 670 crore in the microfinance sector had been incorrectly classified as interest income during the first nine months of FY25 and was entirely reversed by January 10, 2025. The bank additionally disclosed unverified balances amounting to Rs 595 crore in its ‘other assets’ accounts, which were counterbalanced by equivalent sums in ‘other liabilities’ accounts.

Certain market analysts have recommended being careful about the private lender right now. Market expert Arun Kejriwal recommended that investors steer clear of the stock at existing prices and look for more favorable opportunities instead.