The accounting shock comes on the back of deeper troubles in IndusInd Bank's microfinance business. In March 2025, it reported a ₹1,580 crore discrepancy in its derivatives portfolio, with a potential hit of 2.35% to its net worth. Though the Bank appointed an external firm to validate these findings, the shadow over its MFI operations previously marred by allegations of "evergreening" loans through its subsidiary Bharat Financial Inclusion Ltd (BFIL) has returned.