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# IndusInd Bank Posts Q4 FY2025 Net Loss of INR 2,329 Crore After Accounting Lapses and Provisions Surge
- URL: https://www.theglobalbanker.com/indusind-bank-q4-fy2025-net-loss-2329-crore-accounting-fraud-provisions-surge/
- Published: 2025-05-21T12:32:00.000Z
- Updated: 2026-10-02T14:00:00.000Z
- Description: IndusInd Bank posted a Q4 FY2025 net loss of INR 2,329 crore as provisions surged 165% following derivative and microfinance accounting lapses and suspected fraud, with full-year profit falling 71%.
- Author: TGB Editorial Team
- Tags: Banking News, Asia-Pacific, #archive

IndusInd Bank reported a consolidated net loss of INR 2,329 crore for the fourth quarter of fiscal year 2025, the three months ended 31 March 2025, the lender disclosed on 21 May 2025\. The loss — the bank's first quarterly loss in 19 years — was driven by provisions of INR 2,522 crore, a rise of 165% year on year, booked in connection with accounting irregularities that the board had uncovered earlier in 2025 involving the bank's derivative portfolio and the incorrect booking of microfinance interest income. 

Net interest income fell 43% year on year to INR 3,048 crore in the fourth quarter. 

#### BOARD FINDINGS AND RESIGNATIONS

The board said it suspects that fraud may have been committed against the bank involving certain employees with roles in accounting and financial reporting, and directed that the matter be reported to the relevant authorities. The managing director and chief executive officer, Sumant Kathpalia, and the deputy chief executive officer, Arun Khurana, had already resigned in late April 2025\. 

For the full fiscal year 2025, IndusInd Bank's net profit fell 71% year on year to INR 2,575 crore, compared with INR 8,977 crore earned in fiscal 2024\. The gross NPA ratio rose to 3.13% by the end of March 2025, from 1.92% a year earlier.

#### CAPITAL ADEQUACY

IndusInd Bank's capital adequacy ratio remained at 16.24% at the end of the fourth quarter, above the Reserve Bank of India's regulatory minimum.