IndusInd Bank Share Price Jumps 6 Per Cent After This Positive Update On Derivative Discrepancy Issue

Shares of IndusInd Bank jumped as much as 6 per cent after the private lender said that an external review found a lesser-than-expected impact from the discrepancies in its derivatives portfolio. This has come after IndusInd Bank last month reported certain discrepancies in account balances of its derivative portfolio. The bank’s internal review had then estimated an adverse impact of 2.35 per cent of its net worth as of December 2024. However, the external review found the actual negative impact (on a post-tax basis) to be slightly lower at 2.27 per cent of its net worth. This amounts to Rs 1,979 crore.

“The Bank will appropriately reflect the resultant impact in the financial statements for FY 2024-25 and continue to take suitable steps to augment the internal controls relating to the derivative accounting operations of the Bank,” IndusInd Bank said in an exchange filing dated April 15.

The bank’s shares had come under pressure, falling nearly 33 per cent to a 52-week low of Rs 606 apiece, after it disclosed the discrepancy. However, since this low, the shares have recovered up to 28.7 per cent. As of the time of filing this report, the stock had touched an intraday high of Rs 779.95 apiece on the NSE, up 5.98 per cent from the previous close.

Earlier on March 15, the Reserve Bank of India (RBI), while addressing the issue, had reassured depositors that the bank is financially doing ‘satisfactory’ and is "well-capitalised". The central bank, in its statement, had also noted that for the quarter ended December 2024, the bank had a strong Capital Adequacy Ratio of 16.46 per cent and a Provision Coverage Ratio of 70.20 per cent. The bank's Liquidity Coverage Ratio, as of March 9, 2025, stood at 113 per cent, which is comfortably above the required minimum of 100 per cent.

The central bank had also directed the private lender's board and management to implement necessary remedial actions by the end of the fourth quarter of the financial year 2024-25 (Q4 FY25), while ensuring complete transparency with its shareholders.