IndusInd Bank shares fell to 21% in early trade on Tuesday and hit a 52-week low of Rs 707.05. The private lender’s stock opened at Rs 810.55 and fell 20.71% to trade at Rs 714.20. IndusInd Bank shares crash 21%, and it lose nearly 50% in the past six months with 32% decline in the last four weeks alone. The stock falls near to 4% to Rs 900.50 on the NSE in the previous session.
Bank in internal review of its derivative portfolio, found discrepancies and it cause estimated 2.35% reduction in its net worth. It impacts Rs 1,577 crore. The review was conducts to the Reserve Bank of India’s (RBI) September 2023 directions on investment portfolios for lenders. It focus on ‘Other Asset and Other Liability’ accounts.
IndusInd Bank shares crash 21%
IndusInd Bank regulatory filing on March 10 said that it found discrepancies in account balances of its derivative transactions. In internal review of processes relating to Other Asset and Other Liability accounts of the derivative portfolio, post implementation of RBI Master Direction – Classification, accounting of Derivatives, etc are applicable from 1 april 2024.
Bank also noted discrepancies in these account balances. The bank details internal review and estimate the impact of approximately 2.35% of the Bank’s Net worth as of December 2024. The estimated Rs 1,577 crore hit shows the bank’s earnings for the fourth quarter of the current financial year. The lender revealed that these discrepancies in derivatives transactions span across 5 to 7 years.
External auditor of bank review matter
After IndusInd Bank shares crash 21%, bank held analyst call and confirmed that their external auditor review matter, with report will expected to release in end of March 2024.
CEO Sumant Kathpalia, whose tenure was extended by one year by RBI. It address the concerns about leadership stability. He admit that RBI have reservations about his leadership skills.
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