IndusInd Bank has said that the matters under review related to its microfinance subsidiary, Bharat Financial Inclusion Limited (BFIL), are not expected to have any additional financial impact on the bank. However, the statutory auditor of BFIL, in its Limited Review Report issued for the quarter and nine months ended December 31, 2025, has still retained its qualified conclusions pending completion of the investigation.
IndusInd Bank released the results for the December quarter of its current financial year on Friday, January 23. During this, the bank said that it has re-examined the matters related to BFIL. According to the management, these issues were already highlighted in the previous quarter and despite the fresh investigation, the bank’s assessment has not changed. “As assessed in the previous quarter, no additional financial impact is expected going forward,” the bank said.
However, the statutory auditor of BFIL still maintained qualified findings in its limited review report dated January 21, 2026. The auditor says that some processes of the subsidiary company have not yet been completely closed. The management said, “This qualification was also there in the previous quarter. This is not a qualification of the financial results of the bank, but is related to the financial data of the subsidiary company and is related to the events of certain previous years.”
In the post-results investor call, IndusInd Bank’s management clarified to investors that this audit qualification is not a new matter and has no impact on IndusInd Bank’s standalone or consolidated financial results. The management said, “This issue was also present in the previous quarter. This is not an objection to the financial results of the bank, but pertains to the accounts of the subsidiary and is related to certain events in the previous years.”
He further said that the financial impact related to these matters has been completely covered through provisions in the previous years. The focus of the current investigation is primarily on holding staff accountable and formally closing the investigation process, and not on identifying any new financial loss. Management reiterated, “The process that is underway is for staff accountability and to see if any aspects are left open. There will be no new financial impact.”
The bank’s management has described the auditor’s comments as procedural and not negative. He said the auditors have made it clear that they cannot decide whether any further aspects need to be examined until the investigation is complete. “This is just a qualified report stating that till the investigation is completed, it cannot be decided whether there are any further matters worth looking into. But all the financial implications have already been covered,” a senior executive said.
When asked whether the matter related to past frauds or defaults at the ground level, the management replied in the affirmative, reiterating that all such cases had already been identified and accounted for. The bank finally stressed that the qualification issued on BFIL will have no financial impact on IndusInd Bank’s books, whether standalone or consolidated.
Disclaimer: The views and investment advice given by experts/brokerage firms on Moneycontrol are their own and not those of the website and its management. The website or management is not responsible for this. Moneycontrol advises users to consult certified experts before taking any investment decision.