IndusInd Bank estimates 'adverse impact' of 2.35% on networth after review of derivative portfolio

IndusInd Bank

One of India's largest private lenders, IndusInd Bank, during an internal review of processes relating to parts of its derivative portfolio, has estimated an adverse impact of 2.35 percent on its networth, a company filing said on March 10.

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.

The bank said it has noted some discrepancies in these account balances.

"Bank's detailed internal review has estimated an adverse impact of approximately 2.35 percent of 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," the IndusInd Bank statement said.

However, the lender revealed that a final report of the external agency is awaited, basis which the the bank will appropriately consider any resultant impact in its financial statements. Despite that, IndusInd Bank also reassured investors that its profitability and capital adequacy remains healthy to absorb this one-time impact.

IndusInd Bank's shares ended nearly 4 percent lower at Rs 900.50 on the NSE. The stock has shed nearly 16 percent in the last month.

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