IndusInd Fiasco May Have Dented Its FY25 Profit

After the disclosure of additional accounting discrepancies in an internal audit of the IndusInd Bank, brokerages have warned of potential impairment to the bank's core profitability and business growth, revising profitability estimates for 2024-25 (FY25) and FY26.

- BS REPORTER

A review of the bank's microfinance business by the internal audit department (IAD), on Thursday, revealed an incorrect recording of ₹674 crore as interest income over three quarters of FY25. The amount was fully reversed as of January 10.

Earlier, the IAD had found that there were unsubstantiated balances aggregating to ₹595 crore in "other assets" accounts, which were then set off against corresponding balances under "other liabilities" accounts in January 2025.

Lender's shares, however, closed marginally in the green on Friday, at ₹782.30 on the BSE.