IndusInd Bank external agency report finds negative impact of ₹1,979 crore, net worth hit by 2.27%

On March 10, the internal review by the bank had estimated an adverse impact of approximately 2.35% of its net worth as of December 2024.

The external agency report has found discrepancies related to derivative deals. The report has quantified the negative impact of the above as of June 30, 2024, at ₹1,979 crore.

Based on the report, the bank said it has assessed an adverse impact (on a post-tax basis) of 2.27% to the bank’s net worth as of December 2024 on account of these discrepancies.

“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,” IndusInd Bank said in a stock exchange filing on Tuesday.

In March, the bank, however, had said that its profitability and capital adequacy remain healthy to absorb this one-time impact.

On Tuesday, IndusInd Bank was the top contributing scrip on the NIFTY50 index. The stock closed at ₹735.50 per share, jumping 6.67% on the NSE.

IndusInd Bank had reported a 39% year-on-year (YoY) decline in its standalone net profit to ₹1,402.3 crore in the third quarter ending December 31, 2024, compared to ₹2,301 crore in the year-ago period.

The drop in the bank’s net profit comes on the back of a fall in its asset quality as Gross Non-Performing Assets (GNPAs) increased and the capital adequacy ratio decreased.

The bank’s Net Interest Income (NII) also fell by 1.28% YoY to stand at ₹5,228.1 crore, compared to ₹5,295.6 crore in the third quarter of the financial year 2024-25.

IndusInd Bank witnessed a drop in its asset quality as its GNPAs rose 9.66% to ₹8,375.3 crore from ₹7,638.5 crore in the previous quarter.

Furthermore, the bank’s capital adequacy ratio shrunk to 16.46% as of December 31, 2024, in contrast to 17.86 % as of December 31, 2023.