On October 17, 2025, the BFIL auditor’s limited evaluation of the company’s financial data for the September quarter and a half year had previously produced a qualified finding. The Bank noted, nonetheless, that these findings had no bearing on the group’s overall performance.
As the effect of the governance and accounting concerns under investigation has already been recorded in prior financial statements, IndusInd Bank said on October 18 that it does not anticipate any further major financial loss.
The lender said in an exchange statement that its subsidiary, Bharat Financial Inclusion Ltd (BFIL), is still looking into cases of credit and operational losses, unethical behavior, and improper invoices submitted by a service provider. The Bank claims that these problems might be a sign of management overriding controls and governance failures.
This relates to a few procedures that are exclusive to that business line. This is a small-ticket lending business that may occur in that industry. What they are referring to is the fact that certain of our collection agencies in the subsidiary company have received improper payments. During the post-earnings call, IndusInd Bank management said, “We are not talking about the bank entity here, but it is particular to that company.”
On October 17, 2025, the BFIL auditor’s limited evaluation of the company’s financial data for the September quarter and a half year had previously produced a qualified finding. The Bank noted, nonetheless, that these findings had no bearing on the group’s overall performance.
To improve reconciliation processes, decrease manual accounting entries, and fortify internal controls, the Board of Directors established an executive-level Project Management Group. The action comes after almost Rs 1,960 crore in accounting irregularities were discovered in FY25.
The Bank said that in order to guarantee better monitoring and accountability, the execution of these remedial actions is being carefully watched. In order to stop such mistakes from happening again, the Bank and its subsidiary are also strengthening internal procedures and taking disciplinary action as necessary.
The lender has accelerated the provisions to Rs 2,631 crore for the July-September quarter, compared to Rs 1,820 crore for the same period last year.
“As a conservative move, the Bank boosted microfinance provisions and hastened write-offs,” Anand said.
As of September 30, 2025, the Provision Coverage Ratio has increased to 72%.
For the quarter ending September 30, 2025 (Q2 FY26), IndusInd Bank Ltd. recorded a consolidated net loss of Rs 437 crore, down from a net profit of Rs 1,331 crore during the same period the previous year. Although the lender maintained consistent asset quality and robust capital buffers, a dramatic decline in core revenue and a notable increase in provisions were the major causes of the bank’s loss.