•  IndusInd Bank reported a steep Q4FY25 net loss of Rs 2,329 crore, driven by an accounting discrepancy.
•   Its net interest income fell 43 percent YoY, and margins declined sharply raising concerns about financial health.
•   Despite early stock plunge shares recovered slightly, but investor sentiment remains cautious amid ongoing instability.

IndusInd Bank faced intensified financial issues as it announced a sizable consolidated net loss of Rs 2,329 crore for the fourth quarter of the fiscal year 2025, which sharply deviated from market predictions. This loss was linked to an accounting error that surfaced around April 15, exacerbating worries regarding the bank’s financial stability. As a result, the stock experienced a notable decline of 5.7 percent, hitting a low of Rs 725.80 today. Nonetheless, amid these ongoing difficulties, the stock exhibited signs of recovery shortly after, rising by 0.98 percent to trade at Rs 777.50 by 9:40 AM. 

Along with the reported loss, the bank's net interest income (NII) saw a dramatic decrease of 43 percent year-on-year, amounting to Rs 3,048 crore in the fourth quarter of fiscal year 2025, in contrast to Rs 5,376 crore in the fourth quarter of fiscal year 2024. This downturn was paired with a 201 basis point year-on-year drop in its net interest margin (NIM), which stood at 2.25 percent. The NIM also decreased by 168 basis points quarter-on-quarter. In a statement to the stock exchanges, the bank noted, "The Bank has accurately accounted for and incorporated the impact of all discrepancies identified in these reports while finalizing the financial results for the quarter/twelve months ended March 31, 2025."

In the third quarter of fiscal year 2025, IndusInd Bank's performance had also indicated distress, with net profit decreasing by 39 percent year-on-year to Rs 1,402 crore. The NII for Q3 fiscal year 2025 was recorded at Rs 5,228 crore, representing a slight decline of 1.27 percent compared to the same period in fiscal year 2024. The bank’s NIM was noted at 3.93 percent in Q3 fiscal year 2025, down from 4.29 percent in Q3 fiscal year 2024. Additionally, the provisions for the quarter rose to Rs 1,743.6 crore, a significant increase from Rs 969.3 crore in Q3 fiscal year 2024. The volatility in the bank's share price, departures of management, and poor financial results have sparked investor apprehension, casting uncertainty on the private lender's prospects in the upcoming months.