IndusInd Bank shares soars 7% as probe finds Rs 1,979 crore impact in derivatives portfolio, lower than estimates

The impact found is slightly lower than RBI's assessment of approximately Rs 2,000 crore.

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26 Aug, 2025 12:21

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Private lender IndusInd Bank's shares settled seven percent higher during the April 16 session, after the the bank received the findings of the external audit on the discrepancies found in its derivatives portfolio.

The report by the external agency showed Rs 1,979 crore of ‘negative impact’ to the net worth of the bank due to the derivative discrepancies. Based on the report, the bank said that it has assessed an adverse impact of 2.27 percent to its net worth as of 2024.

The impact is lower than RBI's assessment of approximately Rs 2,000 crore. While the lender’s internal audit had estimated an adverse impact of 2.35 percent on net worth, the external agency report puts that number lower by eight basis points.

At close, shares of IndusInd Bank were quoting Rs 785.5 on the NSE, higher by 6.8 percent compared to the previous session's closing price. The bank's shares were the top gainer on the Nifty 50 and Sensex indices.

In an exchange filing, IndusInd Bank said that the impact of this derivative debacle will reflect in the FY25 financial statements. Last month, the crisis-hit lender had appointed an independent firm to carry out a probe into the lapses found by the bank related to its derivatives portfolio.

Further, sources to CNBC-TV18 suggested that the IndusInd Bank board of directors is likely to submit CEO candidate names around 4-6 months ahead of the current CEO Kathpalia's term ending in March 2026. Further, the bank may see three senior level exits, including the CEO and deputy CEO.  However, the bank has denied claims of having received such a communication.

International brokerage Macquarie maintained its outperform rating on IndusInd Banks shares, as the broking house sees limited impact from derivative discrepancies. Macquarie reiterated its target price of Rs 1,210 on IndusInd Bank shares, which implies a 64.5 percent upside from the previous session's closing price.

Morgan Stanley kept its equal-weight rating intact, with a price target of Rs 775, suggesting that the findings were largely in-line with previous estimates. The brokerage will track findings from the comprehensive audit report closely along with the upcoming quarterly earnings.

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