Significant Financial Impact on IndusInd Bank

MUMBAI: IndusInd Bank has disclosed a substantial financial setback, with an external review pinpointing a Rs 1,979 crore hit to its net worth as of June 2024, stemming from discrepancies in its derivatives portfolio. This revelation marks a 2.27% decrease in the bank's net worth by December 2024.

Previous Estimates and Market Reaction

Earlier internal assessments had estimated the impact at approximately 2.35%, with some projections suggesting a Rs 2,100 crore loss by December 2024. The bank's stock experienced a dramatic 27% plunge following the initial announcement, erasing over Rs 19,000 crore in market capitalization. However, a recent 7% rally to Rs 736 on the BSE indicates some investor confidence returning, despite the stock remaining 18% below its pre-announcement level.

Future Steps and Financial Adjustments

IndusInd Bank has committed to reflecting these financial adjustments in its 2024-25 statements and enhancing internal controls over derivative accounting operations to prevent future discrepancies.