Shocking Derivatives Loss at IndusInd Bank

MUMBAI: In a startling revelation, IndusInd Bank is set to take a charge of Rs 1,956 crore in the fourth quarter of FY25 to rectify longstanding discrepancies in its derivatives valuation. This move comes after an independent investigation confirmed an adverse accounting impact of Rs 1,960 crore as of March 31st.

Accountability and Regulatory Intervention

The bank has announced plans to hold employees accountable for the lapses that led to inflated reported profits over several years. The discrepancies, stemming from internal derivative trades between the asset-liability management desk and the treasury, were brought to light following a regulatory intervention by the RBI in September 2023, which tightened derivatives accounting rules.

The Path Forward

With the RBI banning internal derivatives trades from April 2024, IndusInd Bank was forced to unwind its positions, leading to a pre-tax hit warning of Rs 1,600 crore in March 2025. The bank's proactive steps towards transparency and accountability mark a critical juncture in its journey to regain stakeholder trust.