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IndusInd Bank shares will be in focus on Wednesday after an external audit flagged discrepancies in its derivatives portfolio, estimating a negative impact of Rs 1,979 crore as of 30 June 2024. It has also projected a 2.27% post-tax reduction in its net worth for December 2024 due to these irregularities.
In its filing to the exchanges on Tuesday post-market hours, the private lender informed about receiving the report from the external agency.The report comes following IndusInd Bank's own admission on March 10, 2025, where it had said that an internal review had estimated an adverse impact of approximately 2.35% of the bank’s net worth as of December 2024.
The bank had then said that an external agency was also independently reviewing the internal findings. The bank will appropriately reflect the resultant impact in the financial statements for FY 2024-25 and continue to take suitable steps to augment the internal controls relating to the derivative accounting operations of the bank, today's filing said.Also Read: Stocks in news: Wipro, Angel One, Gensol Engineering, IndusInd Bank, IREDA, MGLEarlier, IndusInd Bank's Managing Director & CEO Sumant Kathpalia had said that the losses in its derivative portfolio will be absorbed through P&L in Q4FY25 while clarifying that there was no question of adjusting it through general reserves.
The bank discovered discrepancies in its businesses around September-October and then hired an external agency to review the business, he had told ET Now. He had further said that the operations of the bank will not likely suffer because of the event.The review was undertaken following the Reserve Bank of India's (RBI's) master directions on a derivative portfolio of lenders, issued in September 2023.
The review was related to 'Other Asset and Other Liability' accounts of the portfolio and the lender noted some discrepancies in these account balances.The RBI Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), 2023 was in effect from April 1, 2024.Shares of IndusInd Bank closed at Rs 735.
50 on the NSE in the previous session, rising Rs 46 or 6.7% amid strong buying interest in banking and financial stocks. The stock has recovered from its 52-week low of Rs 606, touched on 12 March 2025.
Also Read: Q4 results today: Wipro, Waree Renewables among 10 companies to announce earnings on Wednesday(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times).
