IndusInd Bank clocks Rs 2,329 crore loss in Q4, to submit new names for CEOs

The bank said that the Board is in an advanced stage in the selection process for new CEOs and will submit the recommendations to the RBI by June 30.

Its Managing Director and CEO Sumant Kathpalia has resigned from his post in connection with the derivatives accounting lapse that has eroded the private sector bank's net worth. Deputy CEO Arun Khurana had also quit after accounting discrepancies were unearthed in the bank's derivatives portfolio by an independent audit.

The bank had disclosed in March that an internal review had uncovered discrepancies in its derivatives portfolio. According to the final assessment, the total adverse impact on the bank's profit and loss account as of March 31 was Rs 1,959.98 crore.

In its stock exchange filing for Q4 results, the bank said "the Board is also in the process of taking necessary steps to assess roles and responsibilities and fixing staff accountability as per the extant laws and internal code of conduct. in all the identified irregularities".

In Q4, IndusInd Bank earned interest income of Rs 10,634 crore, down 13 per cent compared to Rs 12,199 crore reported in the corresponding quarter of the last fiscal.

The private lender reported net interest income of Rs 3,048 crore in Q4 FY25 which was down 43 per cent YoY while declining by 42 per cent on a sequential basis.

As disclosed through stock exchange intimations, the Bank has faced multiple material developments since March 2025.

"These developments have been unfortunate to have taken place in a bank. However, the Board and the Management of the Bank are determined to address all issues brought to their attention in a holistic and timely manner," said the private lender.

The bank said it has healthy liquidity position with LCR of 118 per cent average for Q4 FY25 and continues to be comfortable with an LCR of 139 per cent average for the first half of the ongoing Q1 FY26.

While the bank has reported a loss for Q4 due to these extraordinary developments, it has been profitable for the full year FY25 with profit after tax of Rs 2,575 crore.

Earlier this month, global credit rating agency Crisil placed IndusInd Bank's long-term debt instruments on 'Rating Watch with Negative Implications'. This includes Rs 4,000 crore worth of Tier II bonds and Rs 1,500 crore of infrastructure bonds.