Viral Damania, the bank’s chief financial officer, explained in the post-earnings media call that NII fell due to provisions in the lender’s microfinance portfolio. He explained that accelerated charge-offs in the quarter under review led to increased provisions, which led to the company reporting a net loss for the quarter. To add some context, IndusInd Bank’s microfinance provisions increased by Rs 872 billion sequentially and the bank wrote off bad loans worth Rs 1,940 billion in the quarter under review. Managing director Anand also emphasized that the Bank has tightened underwriting and controls on microfinance and expects growth to normalize in six months. The bank’s financial results included the financial results of its wholly owned subsidiary, Bharat Financial Inclusion Ltd., which was involved in originating small ticket loans for the bank. During the quarter, Bharat Financial continued to review and investigate issues related to operational losses, unapproved practices and unapproved practices. The bank said that a particular service provider had improper invoices. IndusInd Bank added that these practices may be indicative of governance flaws and override of controls by management. He also stated that the Bank does not expect any material financial losses once the investigation is completed. Commenting on the development, Anand explained that microfinance subsidiary auditors had detected some improper payments to collection agencies but the impact of these governance concerns was negligible on the bank’s financial statements. （標籤翻譯）
已发布: 2025-10-18 11:13:00
