Mumbai, March 11
IndusInd Bank shares were locked in a 20 per cent lower circuit on Tuesday as the lender’s internal review projected an adverse impact of approximately 2.35 per cent on its net worth (as of December 2024).
The steep fall erased around Rs 14,000 crore in the bank’s market value. The stock hit a 52-week low of Rs 720.35, to go below the lower band on the NSE.
The bank’s net worth is expected to decline by nearly Rs 2,100 crore after accounting discrepancies of 2.35 per cent of its net worth were found in its derivatives portfolio during an internal review.
The Hinduja-promoted lender plans to absorb this loss in its Q4 earnings or the first quarter of the next fiscal year (FY26).
The internal review findings have sparked a string of target price cuts from several brokerages for the bank's stock amid fresh turmoil, days after the Reserve Bank of India allowed only a one-year extension to Chief Executive Officer, Sumant Kathpalia.
The bank has appointed an external agency to independently review and validate its internal findings on the derivatives portfolio, as per the Reserve Bank of India's September 2023 guidelines on bond investment classification and valuation.