Context:
IndusInd Bank confirmed on April 15 that PwC, the external agency appointed for an independent assessment, identified discrepancies in its derivatives portfolio. The estimated negative impact is pegged at ₹1,979 crore as of June 30, 2024, to be reflected in FY25 financial statements.
Impact on Financial Health
- The adverse post-tax impact is 2.27% on net worth as of December 2024.
- The bank’s Q3FY25 net worth stood at ₹65,102 crore, implying a material financial dent.
- Despite the hit, the bank reaffirmed it will report net profit for Q4 and FY25, as per CEO Sumant Kathpalia.
Timeline of Events
- March 10, 2025: Bank’s internal review flagged an initial estimated hit of ₹1,530 crore (~2.35% of net worth).
- PwC was engaged to validate and refine the impact assessment.
- The bank has also appointed an independent firm to investigate the root cause of the discrepancies.
RBI’s Position and Market Measures
- The Reserve Bank of India (RBI) assured depositors of the bank’s financial stability and urged calm amid speculative reports.
- In response to liquidity concerns, IndusInd Bank raised ₹16,550 crore in Certificates of Deposit (CDs) at 7.75–7.9% interest in March — five times higher than its usual CD market activity.
Deposit and Advances Trends (Q4FY25)
- Retail and small business deposits fell by ₹3,550 crore, from ₹1.88 trillion to ₹1.85 trillion.
- Total deposits rose marginally by 0.4% QoQ, reaching ₹4.11 trillion — a 6.8% YoY increase.
- Overall advances shrank by ₹19,000 crore from the December quarter.
