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Indusind Bank suffers a major setback after 20 years, loss of ₹2,329 crore in the fourth quarter
Indusind Bank: Wrong accounting and fraud in microfinance have pushed Indusind Bank into losses after 20 years. The bank has incurred a net loss of ₹2,329 crore in the fourth quarter of FY 2024-25. The main reason for this is the high provision for fraud.
Wrong accounting for the derivative trade and fraud in the microfinance portfolio has also significantly affected the profitability of Indusind Bank. The bank has also suffered a net loss of ₹2,329 crore in the fourth quarter of FY 2024-25. The key reason behind this was the provisioning for fraud.
IndusInd Bank has reported a loss in a quarter for the first time in about 20 years. Earlier, the bank suffered a loss in the fourth quarter of 2006-07. It has achieved a fourth-quarter profit of Rs 2,349 crore in the year 2023-24. The bank has provisioned Rs 2,522 crore in the fourth quarter, which is higher than the provision of a year ago of Rs 950 crore. The interest income of the bank reduced by 13 per cent. The bank's net profit decreased by 71 per cent at an all-year level in 2024-25 at Rs 2,576 crore.
The board of IndusInd Bank has suspected the involvement of some employees in accounting and financial reporting in the fraud. Also, the management has been directed to inform the investigating agencies and regulatory authorities about the matter.
