Mumbai: IndusInd Bank reported a loss in a quarter of Rs 2,236 crore for three months ending March 2025, a net profit of Rs 2,346 crore a year ago. This was the first quarter loss of the bank since March 2006.The disclosure follows the sudden exit of its Chief Executive Officer and his deputy when the bank detected widespread irregularities in its forex derivatives and microfinance portfolio. The bank managed to record a profit of Rs 2,642 crore for FY 25, which was 70% less than Rs 8,950 crore in the previous year.In filing at the stock exchange, the bank stated that internal and external reviews exposed a fresh fraud, where Rs 172.6 crore was incorrectly booked as a fee income in its microfinance arm. Extensive anomalies classified derivative trades, income recognition and assets and liabilities. The board now suspects frauds associated with senior employees and said it will file a complaint with the enforcement agencies.Bank president Sunil Mehta told the analysts that the internal derivatives were discontinued from April 2024, after confirmation of irregularities by external reviewers. The additional audit found that income was incorrectly made, the loan was incorrectly-raised for an under-provision of Rs 1,885 crore and a lack of balance between “other assets” and “other liabilities”. The bank also denied interest income of Rs 760 crore, which should have been recorded elsewhere.Mehta said that the board will “do whatever needs to be done and to ensure accountability to follow the fixed process without any fear or side”. He said that all issues were duly identified, duly addressed, and declared with stakeholders, and the new CEOs would begin with a new slate.The statutory audit for MSK & Associates and FY25 operated by Chokshi & Chokshi reveals a harmful litni of previous laps. The more serious conclusions had a right-off of Rs 1,960 crore in “accumulated promotion benefits”, as FY2016 originates from internal trades, called “pre-term items” by auditors. He also flagged off the cumulative interest and fee income of Rs 846.4 crore recorded during the year.Auditors highlighted manual entries dating back for many years, which were closed in the current year, which was Rs 595 crore. More seriously, he pointed to the shining times by former major management personnel.
