Following the lender’s disclosure of accounting irregularities pertaining to its derivatives portfolio, IndusInd Bank’s stock saw excessive volatility, which is believed to have had a 2.35 percent impact on the bank’s net value.
On March 27, Press has reported that IndusInd Bank has initiated a forensic audit in response to the PwC investigation, aimed at evaluating how deficiencies in derivative accounting practices have affected the bank’s financial statements. Sources indicated that the final audit report is expected to be presented to the IndusInd board by the end of this week.
Earlier, on March 10, IndusInd Bank revealed certain inconsistencies in its account balances concerning its derivatives portfolio, which were estimated to impact approximately 2.35 percent of its net worth. Following this announcement, the private lender’s shares plummeted by 26 percent. However, the stock later rebounded after management reassured investors of anticipated profits for Q4FY25 and the forthcoming financial year, despite the incurred losses.
Ashok Hinduja, the bank’s promoter, stated that the institution is capable of addressing the identified discrepancies. He urged shareholders not to panic, describing these issues as typical operational challenges. “I understand their concern regarding the lack of prior notification. The banking sector relies on integrity and trust,” he remarked.