IndusInd Bank share price falls 22% as lender says net worth to take 2.35% hit due to account discrepancies

IndusInd Bank notified exchanges, that during their internal review, the bank found discrepancies in their derivatives account balances. The bank said, During the internal review of processes relating to Other Asset and Other Liability accounts of the derivative portfolio, post-implementation of RBI’s circular on valuation and operation of the investment portfolio of commercial banks, the bank found discrepancies in the derivative account balances.

The estimated impact of the discrepancy is expected to be 2.35% of the net worth of the Bank, which is approximately ₹1577 crore. The Bank has also, in parallel, appointed a reputed external agency to independently review and validate the internal findings. A final report of the external agency is awaited and the basis on which the Bank will appropriately consider any resultant impact in its financial statements.

Shares of IndusInd Bank were in free fall after touching a 52-week high in September 2024 at ₹1,498 apiece on the NSE. The shares have corrected nearly 40% from the 52-week high levels. The bank reported a nearly 40% drop in the net profit during Q3FY25 which aggravated investor concerns about Bank’s profitability.