The discrepancy at the country’s fifth-largest private sector bank resulted in a $175 million hole in its balance sheet, raised concerns over governance and led it to appoint Grant Thornton to conduct a forensic review.
On an annual basis, the lender’s loans grew a modest 1.4%, while deposits rose 6.8%. The bank’s shares are down nearly 25% since the lender disclosed the lapse.
The lender in March garnered $2 billion in higher-cost bulk deposits, its biggest monthly haul in at least two years, to shore up its funding base.
Its CASA ratio – the share of low-cost current and savings account deposits and a measure of operational efficiency – slipped to 32.8% from 34.9% in the prior quarter and 37.9% a year ago.
Its liquidity coverage ratio, or the portion of highly liquid assets held to ensure ability to meet their short-term obligations, stood at 118.4% for the fourth quarter. IndusInd has also been grappling with elevated bad loans in the microfinance segment, leading to a drop in profit in the last two quarters. Despite the accounting lapse, the bank expects to report a profit for the fourth quarter and the financial year 2025, its CEO told CNBC-TV18 in March.
