IndusInd Bank has disclosed a regulatory penalty imposed by the Reserve Bank of India, highlighting compliance challenges in its currency chest operations. The bank made the disclosure under Regulation 30 of SEBI Listing Regulations on January 28, 2026.

Penalty Details

The Reserve Bank of India has imposed a penalty of Rs. 2,03,000/- on IndusInd Bank's Currency Chest located in Chennai. The penalty relates to discrepancies found in Soiled Note Remittance (SNR) operations during regulatory examination.

Regulatory Framework

The penalty has been levied under the Master Direction DCM (CC) No. G-1/03.44.01/2025-26 dated April 01, 2025. This master direction establishes the scheme of penalties for bank branches and currency chests, specifically targeting operational discrepancies in currency management.

The regulatory action was taken under para 2.i, ii & iii of the aforementioned master direction, which governs penalty provisions for currency chest operations.

Financial Impact

The bank has quantified the monetary impact of this regulatory action at Rs. 2,03,000/-, representing the direct penalty amount. This penalty stems from discrepancies detected during the examination of soiled notes received in remittance operations.

Compliance Disclosure

IndusInd Bank has fulfilled its disclosure obligations by informing the National Stock Exchange of India, BSE Ltd., and Luxembourg Stock Exchange about the regulatory penalty. The bank has also uploaded this information on its official website at www.indusind.bank.in as part of its transparency commitments.

The disclosure was signed by Anand Kumar Das, Company Secretary, ensuring proper authorization and compliance with regulatory requirements.

IndusInd Bank reported a significant decline in its financial performance for the third quarter, with net profit experiencing a sharp contraction compared to the previous year. The bank's quarterly results reflect challenging operating conditions and highlight key areas of concern for stakeholders.

Financial Performance Overview

The bank's financial metrics for Q3 present a mixed picture, with profitability under pressure while asset quality indicators show marginal stability.

Asset Quality Indicators

Despite the challenging profitability scenario, IndusInd Bank demonstrated slight improvement in its asset quality parameters during the quarter.

The Gross Non-Performing Assets ratio improved marginally to 3.56% from 3.60% on a quarter-over-quarter basis, indicating better asset quality management. The Net Non-Performing Assets ratio remained stable at 1.04%, showing consistency in the bank's recovery mechanisms.

Key Highlights

The quarterly results reveal several critical aspects of the bank's current operational status:

• Net profit declined dramatically by 91% year-over-year to ₹1.30 billion
• Revenue contracted by 11% to ₹114.00 billion compared to the same quarter last year
• Asset quality showed marginal improvement with GNPA ratio declining by 4 basis points
• NNPA ratio maintained stability at 1.04% quarter-over-quarter

The substantial gap between actual net profit of ₹1.30 billion and the estimated ₹420 million suggests the bank exceeded expectations despite the year-over-year decline. This performance reflects the complex dynamics affecting the banking sector and highlights the importance of monitoring both profitability trends and asset quality indicators for a comprehensive assessment of the bank's financial health.