IndusInd Bank Share Price Dips 2.45% on May 21; Reports ₹2,575 Crore Profit in FY25 Results

IndusInd Bank Limited has announced its consolidated financial results for the quarter and year ended March 31, 2025.

Despite facing multiple governance and operational challenges during the fourth quarter, the bank posted a full-year net profit of ₹2,575 crore, supported by a strong balance sheet, robust capital adequacy, and healthy liquidity position.

Addressing Governance Concerns

In a crucial disclosure, the bank acknowledged a series of material developments that surfaced since March 2025, prompting both internal and independent external reviews. These reviews aimed to investigate irregularities, quantify their impact, and implement corrective actions. The Board of Directors collaborated closely with management and external advisors to ensure that the financial statements fairly reflect all concerns brought to light.

Substantive checks conducted by statutory auditors confirmed the integrity of financial reporting, resulting in an unqualified audit opinion. The bank has taken a conservative approach in its disclosures and reporting for the quarter, underscoring its commitment to transparency and accountability. The Board has also initiated efforts to assess responsibilities and enforce accountability in accordance with legal and internal codes of conduct.

Impact on Financial Performance

The financial impact of the irregularities was fully absorbed in Q4 FY25, leading to a quarterly loss. However, the bank maintained profitability for the full year, reporting a net profit of ₹2,575 crore, albeit a significant decline from ₹8,977 crore in FY24.

• Net Interest Income (NII) for FY25 stood at ₹19,031 crore, down from ₹20,616 crore in FY24.
• Fee and Other Income fell to ₹7,690 crore from ₹9,396 crore in the previous year.
• Total Income increased modestly to ₹56,358 crore from ₹55,144 crore in FY24.
• Operating Expenses rose to ₹16,060 crore, compared to ₹14,148 crore in FY24.
• Pre-Provision Operating Profit (PPOP) dropped significantly to ₹10,661 crore from ₹15,864 crore.

The full-year profit contraction reflects the extraordinary developments faced by the bank and the conservative accounting approach adopted to handle them.

Balance Sheet and Capital Position

Despite the financial challenges, IndusInd Bank’s balance sheet remained strong:

• Total balance sheet size grew by 8% to ₹5,54,107 crore as of March 31, 2025, from ₹5,15,094 crore a year ago.
• Net Worth increased to ₹62,532 crore from ₹61,445 crore in FY24.
• Capital Adequacy Ratio (CAR) stood robust at 16.24%, even after absorbing the financial impact of reported issues.
• Provision Coverage Ratio (PCR) remained healthy at 70%.
• The bank maintained an average Liquidity Coverage Ratio (LCR) of 118% during Q4 FY25 and improved to 139% in Q1 FY26, indicating ample liquidity buffer.

Deposits and Advances Performance

• Total Deposits grew 6.83% YoY to ₹4,10,862 crore.
• CASA Deposits stood at ₹1,34,789 crore, making up 32.8% of total deposits.
• Current Account deposits: ₹40,764 crore
• Savings Account deposits: ₹94,025 crore
• Retail Deposits (LCR basis) rose 9% YoY to ₹1,85,180 crore.
• Advances registered marginal growth of 1% YoY to ₹3,45,019 crore.

IndusInd Bank Share Price Performance

On May 22, 2025, IndusInd Bank share price opened at ₹750.00, down from its previous close of ₹769.95. At 9:20 AM, the share price of IndusInd Bank was trading at ₹751.05, down by 2.45% on the NSE.

Also Read: IndusInd Bank to Realign Senior Management Roles After Accounting Review!

Conclusion

IndusInd Bank’s FY25 results reflect a year of significant challenges and resilience. Despite a tough fourth quarter marked by irregularities and increased scrutiny, the bank ensured a fair and transparent representation of its financials. A proactive approach by the Board, strengthened governance mechanisms, and a healthy balance sheet helped the bank maintain profitability for the full year.

While Q4’s financial stress is evident, the bank’s capital position, conservative accounting practices, and high liquidity buffer position it for a more stable performance in FY26.

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