New Delhi:
IndusInd Bank’s share price fell 27.06 percent on Tuesday, March 11 to close at Rs 656.8 per share. Because the internal review of the lender was estimated to have an adverse effect of about 2.35 percent on its net worth (by December 2024). Sheare also touched a new low of 52 weeks during the intra-day trading session, which is a sign of loss in the fifth consecutive session.
IndusInd Bank Shares fell 27.17 percent to close at Rs 655.95 in BSE. During the day trading, it touched its one year low of Rs 649 per share.
Effect of disturbances in derivative portfolio
This huge decline was recorded after private lender disclosed disturbances in its derivative portfolio. This decline was the biggest single-day fall in the bank’s history, so the bank has reduced by about Rs 19,500 crore from the bank’s market price. With this decline, IndusInd Bank has lost about Rs 78,762 crore in its peak in January 2024.
Hope of falling about 2,100 crores in bank’s assets
The bank’s total assets are expected to fall by about Rs 2,100 crore after a disturbance of 2.35 percent in its derivative portfolio during the internal review. The Hinduja promoted lender is planning to compensate for its fourth quarter income or this loss in the first quarter of FY 2026.
Many brokerage cut target price for bank stock
Due to the internal review, a series of cut from several brokerage for the bank’s stock has also been started, which is only a few days after the Reserve Bank of India has given a year expansion to Chief Executive Officer Sumant Kathpalia, a year after one year is given to the Chief Executive Officer Sumant Kathpalia.
Bank appointed consultancy firm to review the loss
The final figures of the bank’s loss will be found out after the outdoor agency investigations. The bank has appointed PWC India, a major consultancy firm for the external review of the discrepancies found in its Treasury Book, which will submit its report in early April. The report states that PWC is expected to offer its conclusions within two to three weeks. City said that IndusInd Bank would have to face the “litmus test” from the view point of success and can evaluate both the board external and internal candidates.
He further said, “In our view, this episode affected the RBI’s decision to extend the tenure of MD and CEO for only 1 year. The evaluation on FY 2027 ABV is 0.9 times and we have reduced the target price from Rs 1,400 to Rs 1,000.”
