MUMBAI: IndusInd Bank on Tuesday said that an external agency reviewing discrepancies in account balances of its derivatives portfolio quantified the hit to its net worth at Rs 1,979 crore, as of June 2024. The bank said this would translate to a 2.27% hit to its net worth as of Dec 2024.
On March 10, the bank had said that an internal review of the same derivatives portfolio quantified the dent to its net worth at about 2.35%. Earlier, the bank did not quantify the hit to its net worth in terms of money, but some estimates put it at Rs 2,100 crore as of Dec 2024.
On Tuesday, IndusInd Bank said it will “appropriately reflect the resultant impact in the financial statements for FY 2024-25 and continue to take suitable steps to augment the internal controls relating to the derivative accounting operations of the bank”.
After the derivatives losses were initially reported by the bank, its stock price plunged by as much as 27% the next day, wiping out over Rs 19,000 crore from its market capitalisation. In Tuesday’s market, before the report of the external agency was communicated to the stock exchanges, the bank’s stock rallied nearly 7% to close at Rs 736 on the BSE.
Still, the stock is down 18% from its March 10 close at Rs 900, hours before the intimation about the derivatives losses.
