IndusInd Bank Shares Climb 2% After Fraud Assurance

New Delhi, Jul 29 (PTI) Shares of private sector lender IndusInd Bank on Tuesday climbed 2 per cent after the firm assured that there will be no more financial impact of the past frauds.

The company's stock edged higher by 2 per cent to Rs 818.60 on the BSE.

At the NSE, it went up by 2 per cent to Rs 818.85.

IndusInd Bank on Monday reported 72 per cent drop in consolidated net profit for the June quarter to Rs 604 crore, and assured that there will be no more financial impact of past frauds.

The bank, which is reeling under a slew of issues stemming from alleged irregularities of the top management in recognising bad loans and trading reverses, had reported a net profit of Rs 2,171 crore in the year-ago period.

It had reported a loss of Rs 2,329 crore for the preceding March quarter, and the interim management, which has taken over operations of the business after the resignation of leadership including then chief executive Sumant Kathpalia, had said that all the possible impacts are recognised.

Total income dropped to Rs 14,420.80 crore in the June quarter of FY26 compared to Rs 14,988.38 crore in the year-ago period.

IndusInd Bank Chairman Sunil Mehta said the bank has delivered "clean and profitable" results in the June quarter, marking a "robust recovery" from the March quarter.

"We have delivered Q1 results without any carry over of the prior period irregularities. Financial impact of legacy issues is behind us," Mehta told analysts over a call.

There was no impact of the legacy issues in the first quarter results as well, he said, adding that the interim management is working to restore the lost ground so that the entity can perform to its potential.

Time was spent by the management in resolving the concerns on the microfinance and the treasury side which had led it to admit fraud as well, he said, specifying that it includes upping governance and transparency, and also improving board oversight on the MFI side.