IndusInd Bank drops 9% after posting Q4 update, net advances fell 5% QoQ

IndusInd Bank shares slipped 9.2 per cent in trade on Monday, April 7, 2025, logging an intraday low at ₹618.05 per share on BSE. The selling pressure came after the company reported its Q4FY25 update.

 

Around 12:59 PM, IndusInd Bank share price was down 2.72 per cent at ₹663.7 per share on BSE. By comparison, the BSE Sensex was down 4.25 per cent at 72,163.07. The market capitalisation of the company stood at ₹51,682.47 crore. The 52-week high of the stock was at ₹1,576 per share and the 52-week low was at ₹605.4 per share.

 

IndusInd Bank released its fourth quarter ended on March 31, 2025, update on Friday, after market hours. In Q4, the bank's net advances declined 5.2 per cent quarter-on-quarter (Q-o-Q) to ₹3,47,933 crore as compared to ₹3,66,889 crore. On a year-on-year basis, net advances increased 1.4 per cent. 

 

The net advances growth for corporate banking was at -4.9 per cent Y-o-Y and -15.1 per cent Q-o-Q and consumer businesses was at 6.3 per cent Y-o-Y and 3.4 per cent Q-o-Q.

 

The bank's deposits grew 0.4 per cent Q-o-Q to ₹4,11,140 crore in Q4FY25 as compared to ₹4,09,554 crore a year ago. On a Y-o-Y basis, the deposits grew 6.8 per cent. 

 

Its current account savings account (CASA) ratio for the quarter under review stood at 32.8 per cent as compared to 37.9 per cent a year ago. 

 

Retail deposits and deposits from small business customers amounted to ₹1,85,180 crore as of March 31, 2025, as compared to ₹1,88,730 crore as of December 31, 2024. 

 

The daily average liquidity coverage ratio (LCR) for Q4FY25 was at 118.4 per cent and 136.2 per cent as at March 31, 2025. 

 

On March 10, IndusInd Bank disclosed that in an internal review it had found discrepancies in its derivative portfolio, which will have an adverse impact of 2.35 per cent on its net worth.

 

The bank stated that it had appointed an external agency to review the estimate of the loss in the derivative portfolio.

 

Later the bank disclosed that it has decided to appoint an independent professional firm to conduct a comprehensive investigation to identify the root cause of the discrepancies in the derivative portfolio.  ALSO READ | Why are Delhivery shares outperforming despite market crash? Details here

 

Amid this, the Reserve Bank of India (RBI) issued a statement addressing speculations surrounding the bank.

 

In the past one year, IndusInd Bank shares have lost 56 per cent against Sensex's rise of 0.83 per cent.