IndusInd Bank’s stock experienced a slight decline on Wednesday following the release of a report from an external agency detailing issues in its derivatives portfolio. The private bank disclosed that the audit uncovered a significant negative impact of ₹1,979 crore on its net worth, stemming from these discrepancies.

Audit Findings and Financial Impact

In a regulatory statement, IndusInd Bank revealed that the external agency conducted a thorough audit, which was completed on April 15, 2025. The findings highlighted irregularities related to derivative transactions, quantifying the adverse effect as of June 30, 2024. The bank stated, “The audit report has quantified the negative impact at ₹1,979 crores, which we are addressing in our upcoming financial statements.”

• Key figures from the report:
  • Negative impact: ₹1,979 crore
  • Estimated impact on net worth: 2.27% post-tax as of December 2024

The bank has committed to making necessary adjustments in its financial disclosures for the fiscal year 2024-25 and emphasized its dedication to strengthening internal controls regarding derivative accounting practices.

Comparisons and Reassurances

Interestingly, IndusInd Bank’s assessment of the impact is somewhat less severe than the Reserve Bank of India’s (RBI) estimate, which approximated the hit to be around ₹2,000 crore. Earlier, on March 10, 2025, the bank had acknowledged discrepancies in its derivatives accounts, predicting a negative impact of about 2.35% on its net worth by the end of 2024.

On March 15, 2025, the RBI provided reassurance to IndusInd Bank customers, stating that the bank remains “well-capitalized” with a “satisfactory” financial outlook despite the findings.

Stock Performance Overview

IndusInd Bank’s share price has experienced fluctuations recently, gaining 10% over the past month while facing a 24% decline over the last three months. Disturbingly, the stock has plunged 45% in the past six months and has seen a staggering 50% drop over the past year. When looking at a two-year horizon, the shares have decreased by 34%.

At 9:17 AM, shares of IndusInd Bank were trading down by 0.03%, priced at ₹735.65 on the Bombay Stock Exchange (BSE).

As IndusInd Bank navigates these challenges, it is focusing on enhancing its internal controls to mitigate future discrepancies and reassure investors of its stability.