The review followed the Reserve Bank of India’s (RBI) master directions on the derivative portfolios of lenders, issued in September 2023. It examined the bank’s “Other Asset and Other Liability” accounts and identified discrepancies in 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.
“Bank’s detailed internal review has estimated an adverse impact of approximately 2.35% of the bank’s net worth as of December 2024. The Bank has also, in parallel, appointed a reputed external agency to independently review and validate the internal findings. A final report of the external agency is awaited and basis which the Bank will appropriately consider any resultant impact in its financial statements,” IndusInd Bank said in its filing.
However, IndusInd Bank said that its profitability and capital adequacy remain healthy to absorb this one-time impact.
The bank’s board met on Monday after market hours to discuss the issue and the filing was made after the conclusion of the meeting.Also Read: Stocks in news: City Union Bank, Navin Fluorine, Syngene, IIFL Finance, NLC India, Sharda Cropchem and Arvind Fashions
IndusInd Bank Q3 earnings
The bank had reported a 39% decline in its December quarter standalone net profit to Rs 1,401 crore versus Rs 2,298 crore reported in the year-ago period. However, the profit after tax (PAT) was ahead of Street’s estimates of Rs 1,282 crore.
The Net interest income (NII) stood at Rs 5,228 crore, down from Rs 5,296 crore in Q3FY24. Net interest margins declined to 3.93% from 4.29% in Q3FY24 and 4.08% in Q2FY25.
Also Read: IndusInd faces Rs 2,000-crore net worth hit over derivative discrepancies
IndusInd Bank shares performance
On Monday, IndusInd Bank shares closed at Rs 900.6, down 3.9% on the BSE, while the benchmark Sensex declined 0.29%. The stock has declined 42% in the past 12 months and 1% over the last five years. The company’s market capitalization stands at Rs 70,161 crore.
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