IndusInd Bank shares tanks 23%; hits 52-week low after discrepancies in its derivatives portfolio

An illuminated signboard of IndusInd Bank is seen outside one of its branches, in New Delhi. File
| Photo Credit: Reuters

Falling for the fifth straight day, shares of IndusInd Bank tanked 23% in the morning trade on Tuesday (March 11, 2025) after the private sector lender reported some discrepancies in its derivatives portfolio.

On the BSE, the stock of IndusInd Bank slumped 22.8% to hit the lower circuit at ₹695.25 per piece, also its 52-week low.

The scrip of the company plummeted 21.67% to hit a 52-week low of ₹705.35 apiece, on the National Stock Exchange (NSE).

The stock emerged as the major laggard on the 30-share BSE Sensex.

The market benchmark indices are trading in the red zone, with the BSE Sensex declining by 255 points or 0.34% to 73,860.17. The Nifty of NSE fell by 47.65 points or 0.21% to 22,412.65.

In a regulatory filing on Monday (March 10, 2025), IndusInd Bank said that during an internal review of processes relating to the derivatives portfolio, it noted some discrepancies in the account balances.

Mumbai-based IndusInd Bank’s detailed internal review has estimated an adverse impact of approximately 2.35% of bank’s net worth as of December 2024, the company said in a statement.

The review was undertaken following RBI’s directions on investment portfolio of lenders, issued in September 2023, relating to ‘Other Asset and Other Liability’ accounts of the portfolio.

According to experts, this could potentially impact IndusInd Bank’s net worth by ₹1,500 crore.

Following this disclosure, IndusInd Bank held an analyst call and said that an external auditor is reviewing the matter, with a report expected by the end of March 2024.

However, IndusInd Bank clarified that the profitability and capital adequacy remains healthy to absorb this one-time impact.

On Monday (March 10), IndusInd Bank’s shares ended nearly 4% lower after the Reserve Bank of India’s (RBI) decision to extend the incumbent CEO’s term to one year against three years that was sought by the private sector lender.