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Indbank Merchant Banking Services Ltd

| Assets & Liabilities – As on March 31, 2026

NEUTRAL SENTIMENT

Report Source

⬤20th Apr 26

Summary : Indbank reported lower FY26 profits, unmodified audit, facing old receivables and tax disputes.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Employee Benefits Expenses: ₹928.45 lakhs (FY26), ₹897.50 lakhs (FY25)
  2. Others expenses: ₹440.60 lakhs (FY26), ₹394.86 lakhs (FY25)
  3. Total Expenses: ₹1,549.91 lakhs (FY26), ₹1,530.95 lakhs (FY25)
  4. Lease and hire purchase receivables (₹470.07 lakhs) from discontinued operations, with ₹162.08 lakhs written off and ₹24.00 lakhs additional provision made. Balance 10 accounts fully provided.
  5. Interest Income: ₹684.30 lakhs (FY26), ₹626.51 lakhs (FY25)
  6. Fees and commission Income: ₹1,818.89 lakhs (FY26), ₹2,010.62 lakhs (FY25)
  7. Total Revenue from Operations: ₹2,511.27 lakhs (FY26), ₹2,677.55 lakhs (FY25)
  8. Cash generated from operations: ₹412.68 lakhs (FY26), ₹345.93 lakhs (FY25)
  9. Net cash from Investing Activities: ₹(144.50) lakhs (FY26), ₹56.16 lakhs (FY25)
  10. Net Cash used in Financing Activities: ₹(18.73) lakhs (FY26), ₹(12.18) lakhs (FY25)
  11. Net Increase/(decrease) in cash and cash equivalents: ₹41.44 lakhs (FY26), ₹36.91 lakhs (FY25)
  12. Disputed income tax demands amounting to ₹1842.78 lakhs, for which no provision has been made.
  13. Total Assets: ₹12,313.93 lakhs (FY26), ₹11,788.95 lakhs (FY25)
  14. Cash and cash equivalents: ₹141.06 lakhs (FY26), ₹100.24 lakhs (FY25)
  15. Investments: ₹301.96 lakhs (FY26), ₹182.86 lakhs (FY25)
  16. Other Equity: ₹5,436.27 lakhs (FY26), ₹4,727.35 lakhs (FY25)
  17. Standalone financial results

Corporate Overview

  1. Lease and hire purchase receivables written off
  2. Unquoted investments fully provided
  3. Disputed income tax demands
  4. Merchant Banking Services
  5. Interest Income
  6. Dividend Income
  7. Rental Income
  8. Fees and commission Income
  9. Net gain on fair value changes
  10. Other Income

Risk Factors

  1. Significant lease/hire purchase receivables written off.
  2. Unquoted investments fully provided due to diminution.
  3. Large disputed income tax demands pending.
  4. Uncertainty in recovery of old receivables.

Key Drivers

  1. Unmodified audit opinion received.
  2. Positive cash flow from operations.
  3. Management expects favorable legal outcomes.
  4. Resolution of old outstanding receivables.

Auditor’s Report

  1. Unmodified opinion
  2. Lease and hire purchase receivables (₹470.07 lakhs) from discontinued operations, with significant write-offs and provisions made.
  3. Disputed income tax demands (₹1842.78 lakhs) for which no provision has been made based on legal advice.

Board Commentary

  1. Lease and hire purchase receivables
  2. Unquoted investments
  3. Disputed income tax demands
  4. Civil suit for recovery of funds
  5. Disputed TDS and advance tax balances
  6. Disputed income tax demands

Corporate Governance

  1. Auditors confirm compliance with Code of Ethics.
  2. Auditors confirm compliance with ethical requirements regarding independence.

Management Discussion & Analysis

Operational Focus Areas

  1. Evaluate recovery of receivables
  2. Resolve disputed income tax demands
  3. Write-off unquoted investments

Risk Control Measures

  1. Engaging professionals for recovery
  2. Legal advice for tax disputes
  3. Management expects favorable outcomes

Critical Risks

  1. Unrecovered lease and hire purchase receivables
  2. Diminution in value of unquoted investments
  3. Pending disputed income tax demands
  4. Unidentified beneficial owners for dividends