MFI problems are more significant to IndusInd Bank than derivative problems.

El estudio de las fallas en la contabilidad de derivatives en IndusInd Bank ha revelado también otras irregularidades en accounting, particularmente en el portafolio de microfinance. A estimación aproximada de la repercusión en finanzas, basada en la auditoría reportada y las anotaciones a los accounts revelados para Q4FY25, sugiere que el impacto neto en finanzas puede fluctuar entre Rs 4,975 crore. Esto abarca ajustes en la contabilidad y reversas de instrumentos derivatives, así como la corrección de fallos en el portafolio de microfinanzas de la banca. An email enviado a IndusInd Bank solicitando confirmación sobre el estimado impacto de Rs 4,975 crore no obtuvo respuesta until the fecha de publicación del artículo. Aunque la provisioning para el trimestre que concluyó el 31 de marzo de 2025, aumentó considerablemente a más de Rs 2,000 crore, principalmente debido a adjustments a la administración de microfinanzas, la mayoría de las otras modificaciones se han realizado dentro de los elementos del balance de ganancias y pérdidas (P&L) report, tales como trasladar un segmento de la ganancia a otra partida y así sucesivamente. IndusInd Bank has encountered significant issues related to accounting irregularities, particularly concerning its derivative portfolio and microfinance sector. A recent audit revealed that discrepancies in the bank's financial reporting for Q4FY25 led to an estimated net impact of approximately ₹4,975 crore. This figure includes adjustments in accounting practices, reversals of derivative instruments, and the correction of errors within the microfinance portfolio. These findings highlight the depth of the issues within the bank's financial operations, which have affected both its asset management and overall profitability. The bank's provisioning for the quarter ending March 31, 2025, saw a sharp increase to over ₹2,000 crore, largely due to corrective measures taken in the microfinance portfolio. These adjustments were necessary after errors in income recognition were identified, amounting to around ₹674 crore, primarily from misclassifications in the microfinance division. Many of these changes have been reflected in the bank's profit and loss (P&L) statement, with transfers made between different income and expense categories to account for the discrepancies. These steps are part of the broader effort to restore financial accuracy and compliance with regulatory standards. Despite the significant impact on the bank's financial results, it appears that many of the adjustments were made internally, without external reporting of the issues until the audit process was completed. IndusInd Bank has yet to respond to inquiries about the exact impact of the ₹4,975 crore discrepancy, leaving some uncertainty about the full extent of the financial damage. However, it is clear that these corrections have played a critical role in addressing the underlying issues that have affected the bank’s financial statements. Moving forward, IndusInd Bank is working to implement corrective actions to prevent further discrepancies and ensure greater transparency in its operations. The bank is also focusing on restoring investor confidence by addressing the structural issues within its microfinance and derivative portfolios. As investigations continue, the bank's management remains under scrutiny, and stakeholders are awaiting further details on the steps the bank will take to stabilize its financial position.