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Informist, Thursday, Apr. 24, 2025

--IndusInd Bank denies halt in new customer acquisitions in microfin segment 

--CONTEXT: Media reports said IndusInd Bk paused onboarding microfin clients 

--IndusInd Bank: No RBI directive to stop onboarding microfinance customers 

--IndusInd Bank: Deny senior official in microfin segment has been let go 

NEW DELHI – IndusInd Bank Thursday denied reports that the bank has stopped onboarding new customers within its microfinance segment since January. "The Bank has not received any instructions from the RBI (Reserve Bank of India) to stop onboarding customers in the microfinance segment," the lender said in a statement on Thursday

The bank also denied letting go of a senior official in the microfinance business. A media report on Thursday said that IndusInd Bank had halted onboarding new microfinance institution customers since January after feedback from the RBI. The report also said Vikas Muttoo, chief operating officer of IndusInd's microfinance unit Bharat Financial Inclusion Ltd. resigned after it was decided to halt taking on new microfinance customers.

IndusInd Bank has been mired in controversy after the bank in March said it had noted certain discrepancies in the account balances of its derivative portfolio. The bank last week said the discrepancies in the derivative portfolio would have a INR-19.79-billion hit to the net worth as of Jun. 30. This, the bank said, would be reflected in the financial results for 2024-25 (Apr-Mar).

IndusInd Bank is yet to announce when it will release the financial results for Jan-Mar and FY25. The bank had reported a net profit of INR 14.01 billion for Oct-Dec, down 39% on year.

Earlier this week, a media report had said that IndusInd Bank's board has appointed EY to undertake a second forensic audit, especially to investigate a INR-6-billion discrepancy related to the accrual of interest income in its microfinance portfolio. The bank clarified on Tuesday that it has not engaged EY for a forensic audit and that the bank's internal audit department was conducting a review of its microfinance business to examine certain concerns, which have been brought to the bank's attention. 

Shares of IndusInd Bank closed 3.2% higher at INR 819.75 on the National Stock Exchange on Thursday.  End

Reported by Shubham Rana

Edited by Saji George Titus

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