New Delhi, July 23 -- The markets were unconvinced by IndusInd Bank's June-quarter (Q1FY27) earnings, which showed early signs of a turnaround. The stock fell over 5% on Thursday, perhaps owing to profit-booking as it had already rallied 18% over the past month until Wednesday in anticipation of a recovery.

The governance crisis that erupted in September 2024 and escalated had brought into question the bank's accounting practices, particularly related to derivatives and microfinance loans.

Following several quarters of fixing the overstated microfinance incomes and misclassified loans, IndusInd's Q1 net profit came in at Rs.1,037 crore, against Rs.604 crore last year, aided by a return to sequential loan growth and improving asset quali...