An external agency has reported discrepancies in IndusInd Bank's derivatives portfolio estimating a negative impact of Rs 1,979 crore as of June 30, 2024. It has also projected a 2.27% post-tax reduction in its net worth for December 2024 due to these irregularities.
In its filing to the exchanges on Tuesday post markets hours, the private lender informed about receiving the report from the external agency.
The report comes following IndusInd Bank's own admission on March 10, 2025 where it had said that an internal review had estimated an adverse impact of approximately 2.35% of the bank’s net worth as of December 2024.
The bank had then said that an external agency was also independently reviewing the internal findings.
"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," today's filing said.
Shares of IndusInd Bank today ended at Rs 735.50 on the NSE, jumping by 46 or 6.7% amid significant buying action in most banking and financial stocks.
IndusInd Bank shares have rebounded from their 52-week low of Rs 606, hit on March 12, 2025.
Earlier, IndusInd Bank's Managing Director & CEO Sumant Kathpalia had said that the losses in its derivative portfolio will be absorbed through P&L in Q4FY25 while clarifying that there was no question of adjusting it through general reserves.
The bank discovered discrepancies in its businesses around September-October and then hired an external agency to review the business, he had told ET Now. He had further said that the operations of the bank will not likely suffer because of the event.
The review was undertaken following Reserve Bank of India's (RBI's) master directions on derivative portfolio of lenders, issued in September 2023. The review was related to 'Other Asset and Other Liability' accounts of the portfolio and the lender noted some discrepancies in these account balances.
The RBI Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), 2023 was in effect from April 1, 2024.
In its filing to the exchanges on Tuesday post markets hours, the private lender informed about receiving the report from the external agency.
The report comes following IndusInd Bank's own admission on March 10, 2025 where it had said that an internal review had estimated an adverse impact of approximately 2.35% of the bank’s net worth as of December 2024.
The bank had then said that an external agency was also independently reviewing the internal findings.
"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," today's filing said.
Shares of IndusInd Bank today ended at Rs 735.50 on the NSE, jumping by 46 or 6.7% amid significant buying action in most banking and financial stocks.
IndusInd Bank shares have rebounded from their 52-week low of Rs 606, hit on March 12, 2025.
Earlier, IndusInd Bank's Managing Director & CEO Sumant Kathpalia had said that the losses in its derivative portfolio will be absorbed through P&L in Q4FY25 while clarifying that there was no question of adjusting it through general reserves.
The bank discovered discrepancies in its businesses around September-October and then hired an external agency to review the business, he had told ET Now. He had further said that the operations of the bank will not likely suffer because of the event.
The review was undertaken following Reserve Bank of India's (RBI's) master directions on derivative portfolio of lenders, issued in September 2023. The review was related to 'Other Asset and Other Liability' accounts of the portfolio and the lender noted some discrepancies in these account balances.
The RBI Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), 2023 was in effect from April 1, 2024.
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