IndusInd Bank share price down nearly 20% after internal review finds derivatives portfolio discrepancies
IndusInd Bank share price: As a result, it has estimated an adverse impact of approximately 2.35% of the bank’s net worth as of December 2024.
IndusInd Bank share price: IndusInd Bank shares fell 20% during the early trading session on Tuesday, March 11, after the private lender announced discrepancies found after an internal review of its derivatives portfolio.
At 10 am, the bank's shares were down 19.05% or by ₹171.55, trading at ₹729.05 on the Bombay Stock Exchange (BSE).
Also Read: Tesla shares fall over 15% over concerns of slowing sales
The bank had announced in its exchange filing dated March 10, 2025, that "During internal review of processes relating to Other Asset and Other Liability accounts of the derivative portfolio," it "noted some discrepancies in these account balances."
As a result, it has estimated an adverse impact of approximately 2.35% of the bank’s net worth as of December 2024.
IndusInd Bank has also appointed a "reputed external agency" to independently review and validate the internal findings.
Also Read: Dubai to India: Limit on gold you can bring without paying customs duty
The bank is awaiting a final report of the external agency, based on which it will appropriately consider any resultant impact in its financial statements.
IndusInd Bank also mentioned in its filing that its "profitability and capital adequacy remains healthy to absorb this one-time impact."
All of this comes almost a year after the implementation of Reserve Bank of India's (RBI) Master Direction - Classification, Valuation, and Operation of Investment Portfolio of Commercial Banks (Directions), 2023, issued in September 2023, and applicable from April 1, 2024.
Also Read: Crude oil prices fall over Chinese inflation dip
“IndusInd Bank extended its losing streak, hitting a monthly low and edging closer to its 52-week low,” Axis Securities wrote in its Daily Derivatives Snapshot. “This decline was accompanied by a 2.1% surge in open interest, reaching a two-month high with 5.36 million shares added.”
The brokerage added that the “bearish momentum intensified after multiple analysts downgraded the stock and slashed price targets” and that “the correlation between the falling price and rising open interest signals a substantial short build-up, reflecting sustained bearish sentiment in the stock.”
