Private lender IndusInd Bank, reported a 2 percentage point decline in the growth of its term deposits and low-cost deposits in the March quarter compared to the December 2024 quarter, according to provisional figures. This drop is likely due to deposit outflows following the bank's disclosure of accounting discrepancies related to forex derivatives.
In an exchange filing, the bank stated that deposits in its current and savings accounts grew by 32.8% as of the end of the March 2025 quarter, compared to 34.9% growth in the December 2024 quarter.
Analysts estimate that nearly Rs 3,550 crore may have been withdrawn by retail and small business depositors during the March quarter. Provisional data showed that retail deposits and deposits from small business customers declined to Rs 1,85,180 crore as of March 31, 2025, from Rs 1,88,730 crore as of December 31, 2024.
The bank’s total deposits grew modestly by 0.4% sequentially, reaching Rs 4.11 lakh crore as of March 31, 2025. On a year-on-year basis, total deposits increased by 6.8%, compared to an 11% growth in the December quarter.
To counter the deposit outflows, IndusInd Bank raised over six times its usual amount from certificates of deposit, securing Rs 16,550 crore in March 2025, compared to Rs 2,500 crore in the same month the previous year.
On March 7, the Reserve Bank of India (RBI) approved a one-year extension for Sumant Kathpalia’s reappointment as CEO. Kathpalia’s term, initially set to end on March 24, 2025, will now conclude on March 23, 2026.
On March 10, the bank disclosed the initiation of an internal review of a portion of its derivative portfolio after identifying discrepancies in account balances. The bank estimates these discrepancies could impact its net worth by approximately 2.35%, with analysts projecting a potential loss of around Rs 1,600 crore.
After this announcement the very next day the lender’s stock fell more than 27% and has so far has fallen more than 50% on year. IndusInd Bank’s share price is currently trading at Rs 682 a piece.
Subsequently, on March 21, IndusInd Bank announced the appointment of an independent firm to conduct a comprehensive audit of its derivatives portfolio and to determine management accountability for the issue.
Meanwhile its advances growth fell 5.2% sequentially taking the total loan book to Rs 3.48 lakh crore at the end of the March quarter. Corporate book led the decline with a contraction of more than 15% in the book sequentially. On year basis the corporate book contracted nearly 5%. The consumer loans grew by 6.3% on year and 3.4% quarter on quarter, provisional numbers showed.
In an exchange filing, the bank stated that deposits in its current and savings accounts grew by 32.8% as of the end of the March 2025 quarter, compared to 34.9% growth in the December 2024 quarter.
Analysts estimate that nearly Rs 3,550 crore may have been withdrawn by retail and small business depositors during the March quarter. Provisional data showed that retail deposits and deposits from small business customers declined to Rs 1,85,180 crore as of March 31, 2025, from Rs 1,88,730 crore as of December 31, 2024.
The bank’s total deposits grew modestly by 0.4% sequentially, reaching Rs 4.11 lakh crore as of March 31, 2025. On a year-on-year basis, total deposits increased by 6.8%, compared to an 11% growth in the December quarter.
To counter the deposit outflows, IndusInd Bank raised over six times its usual amount from certificates of deposit, securing Rs 16,550 crore in March 2025, compared to Rs 2,500 crore in the same month the previous year.
On March 7, the Reserve Bank of India (RBI) approved a one-year extension for Sumant Kathpalia’s reappointment as CEO. Kathpalia’s term, initially set to end on March 24, 2025, will now conclude on March 23, 2026.
On March 10, the bank disclosed the initiation of an internal review of a portion of its derivative portfolio after identifying discrepancies in account balances. The bank estimates these discrepancies could impact its net worth by approximately 2.35%, with analysts projecting a potential loss of around Rs 1,600 crore.
After this announcement the very next day the lender’s stock fell more than 27% and has so far has fallen more than 50% on year. IndusInd Bank’s share price is currently trading at Rs 682 a piece.
Subsequently, on March 21, IndusInd Bank announced the appointment of an independent firm to conduct a comprehensive audit of its derivatives portfolio and to determine management accountability for the issue.
Meanwhile its advances growth fell 5.2% sequentially taking the total loan book to Rs 3.48 lakh crore at the end of the March quarter. Corporate book led the decline with a contraction of more than 15% in the book sequentially. On year basis the corporate book contracted nearly 5%. The consumer loans grew by 6.3% on year and 3.4% quarter on quarter, provisional numbers showed.
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