IndusInd Bank share price traded lower on Wednesday ahead of the Q4 results today. IndusInd Bank shares opened higher at ₹782.45 apiece as against its previous close of ₹782 on the BSE. The stock rose to an intraday high of ₹787.10. However, IndusInd Bank stock price declined as much as 1.47% to ₹770.45 apiece on the BSE.
IndusInd Bank is set to announce its Q4 results today. The board of directors of the private sector lender is scheduled to meet today, 21 May 2025, to declare the financial results for the fourth quarter of FY25 as well as for the full financial year 2024-2025.
IndusInd Bank is already facing scrutiny due to multiple audits after the recently uncovered accounting discrepancies in its derivatives portfolio. The bank’s MD & CEO Sumant Kathpalia, Deputy CEO and Whole Time Member Arun Khurana and CFO Gobind Jain have resigned from their positions amid the ongoing investigations in the incorrect accounting that hit profit by about ₹1,960 crore.
IndusInd Bank Q4 results are expected to remain weak, with the lender likely to post a net loss during the March quarter due to the recent accounting discrepancies and stress in the MFI portfolio.
Here’s what to expect from IndusInd Bank Q4 results today:
IndusInd Bank Q4 Results 2025 Preview
IndusInd Bank is expected to swing into a net loss of ₹759.4 crore in the quarter ended March 2025, as against a profit of ₹2,346.8 crore in the year-ago period, according to estimates by Elara Capital.
The bank’s net interest income (NII) – the difference between interest earned and interest paid – in Q4FY25, is estimated to drop 4.8% to ₹5,118 crore from ₹5,376.4 crore, year-on-year (YoY).
According to Kotak Institutional Equities, IndusInd Bank’s Pre-provision operating profit (PPOP) during the quarter is expected to fall 67.3% YoY to ₹1,318 crore.
“We expect disappointing performance from most of the bank’s key metrics, led by higher provisions and weak revenue growth. Operating profits to decline (65% YoY), led by higher provisions for derivative transactions. NIM (reported) is likely to decline 20 bps QoQ at 3.6% due to de-recognition in the MFI portfolio and a marginal increase in the cost of deposits,” Kotak Equities said.
Provisions are estimated to increase sharply due to higher slippages from the microfinance (MFI) portfolio. The brokerage forecasts provisions in Q4FY25 to jump 155.8% YoY to ₹2,300 crore. It builds in slippages of ~2.7% ( ₹2,500 crore).
While business growth of IndusInd Bank is estimated to be modest during the January-March 2025 quarter, analysts expect asset quality to continue to see a decline sequentially.
Gross Non-Performing Assets (GNPA) ratio in Q4FY25 is expected to rise to 2.4% from 2.3%, quarter-on-quarter (QoQ). Net NPA ratio is also estimated to deteriorate to 0.8% from 0.7%, QoQ.
Going ahead, key focus areas would be deposit mobilization, marginal cost of funds, the situation at the bank after the recent episode of derivative accounting and the MFI portfolio.
Should you buy IndusInd Bank shares ahead of Q4 results today?
Brokerage firm Motilal Oswal Financial Services has a ‘Neutral’ rating on IndusInd Bank shares with a target price of ₹850 apiece.
On the technical front, IndusInd Bank share price has rejected key daily moving averages, but the downmove lacks strong selling volumes, noted Anshul Jain, Head of Research at Lakshmishree Investments.
“This sets the stage for a potential bear trap, especially if IndusInd Bank stock sustains above the ₹800 mark. A move above ₹800 would likely trigger fresh bullish momentum, with upside targets of ₹845 – 875. The recent volume profile isn’t as distributive as earlier, indicating the current weakness may be deceptive and a precursor to a sharp reversal,” Jain said.
IndusInd Bank share price has fallen 26% in three months, and more than 20% YTD. The banking stock has dropped 21% in six months and has declined 45% in one year. Over the past two years, IndusInd Bank share price is down 38%.
At 10:30 AM, IndusInd Bank share price was trading 1.10% lower at ₹773.40 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
