IndusInd Bank Shares Plummet Amid Derivatives Discrepancies

IndusInd Bank's stock nosedived by 23 percent as discrepancies in its derivatives portfolio emerged. The audit revealed potential impacts on the bank's net worth, leading to heightened scrutiny. Despite the turmoil, the bank asserts strong profitability and capital adequacy remains intact amid ongoing reviews by external auditors.

IndusInd Bank's shares suffered a significant blow, plummeting by 23 percent during morning trade on Tuesday. The dramatic drop followed the revelation of discrepancies in the bank's derivatives portfolio, sending its stock to a 52-week low on both the BSE and NSE.

The internal review, mandated by the RBI, indicated a potential adverse impact on IndusInd Bank's net worth. Despite an estimated hit of approximately Rs 1,500 crore, the bank assured stakeholders of its robust profitability and capital adequacy to handle the situation.

As the firm navigates these financial rough waters, an external auditor's report is anticipated by March 2024. Meanwhile, the bank's shares closed nearly 4 percent lower following the RBI's decision to limit its CEO's term, adding to the ongoing pressures.

(With inputs from agencies.)