IndusInd Bank faces a Rs 1,979 crore hit from discrepancies in its derivative portfolio, according to a report submitted by an external agency on Tuesday. The impact represents 2.27% of the bank’s net worth as of December 2024, slightly below the 2.35% it had previously estimated. The amount disclosed by the external agency is more than bank’s net profit of Rs 1401.3 crore in the October-December quarter. “Based on the report, the bank has assessed an adverse impact (on a post-tax basis) of 2.27% to the bank’s net worth as of December 2024 on account of these discrepancies,” the bank stated in a filing to the stock exchanges. The bank added that the hit would appropriately reflect the resultant impact in the financial statements for FY25 and continue to take suitable steps to augment the internal controls relating to the derivative accounting operations. IndusInd Bank, country’s fifth largest private bank, on March 10 announced that it had found certain discrepancies in accounts balances of its derivative portfolio. It appointed an external agency to independently review its internal findings and to get the final report to determine the accounting treatment of any resulting impact on its financial statements. On March 7, the Reserve Bank of India (RBI) granted CEO Sumant Kathpalia only a one-year extension, against the board’s application for three years. IndusInd Bank shares gained nearly 7% to end at Rs 735.85 on the BSE on Tuesday. It was the top performer among the Sensex pack. The lender’s scrip has rebounded from the 52-week low of Rs 606 it hit on March 12. To allay the fears of IndusInd Bank customers, the RBI said on March 15 that the private lender remains financially stable and well-capitalised. IndusInd Bank reported a Capital Adequacy Ratio of 16.46% and a Provision Coverage Ratio of 70.20% for the quarter that ended December 31, 2024. The bank also maintained a Liquidity Coverage Ratio (LCR) of 113% as of March 9, 2025, exceeding the regulatory requirement of 100%, according to the RBI. – Banking & Finance News
IndusInd Bank faces a Rs 1,979 crore hit from discrepancies in its derivative portfolio, according to a report submitted by an external agency on Tuesday. The impact represents 2.27% of the bank’s net worth as of December 2024, slightly below the 2.35% it had previously estimated. The amount disclosed by the external agency is more than bank’s net profit of Rs 1401.3 crore in the October-December quarter. “Based on the report, the bank has assessed an adverse impact (on a post-tax basis) of 2.27% to the bank’s net worth as of December 2024 on account of these discrepancies,” the bank stated in a filing to the stock exchanges. The bank added that the hit would appropriately reflect the resultant impact in the financial statements for FY25 and continue to take suitable steps to augment the internal controls relating to the derivative accounting operations. IndusInd Bank, country’s fifth largest private bank, on March 10 announced that it had found certain discrepancies in accounts balances of its derivative portfolio. It appointed an external agency to independently review its internal findings and to get the final report to determine the accounting treatment of any resulting impact on its financial statements. On March 7, the Reserve Bank of India (RBI) granted CEO Sumant Kathpalia only a one-year extension, against the board’s application for three years. IndusInd Bank shares gained nearly 7% to end at Rs 735.85 on the BSE on Tuesday. It was the top performer among the Sensex pack. The lender’s scrip has rebounded from the 52-week low of Rs 606 it hit on March 12. To allay the fears of IndusInd Bank customers, the RBI said on March 15 that the private lender remains financially stable and well-capitalised. IndusInd Bank reported a Capital Adequacy Ratio of 16.46% and a Provision Coverage Ratio of 70.20% for the quarter that ended December 31, 2024. The bank also maintained a Liquidity Coverage Ratio (LCR) of 113% as of March 9, 2025, exceeding the regulatory requirement of 100%, according to the RBI. – Banking & Finance News | The Financial Express
