IndusInd Bank shares stare at more downside as lender reports derivative portfolio mismatch

A day after IndusInd Bank Ltd shares tumbled as RBI cleared reappointment of incumbent bank CEO Sumant Kathpalia for one year only, the stock is in focus on Tuesday as the lender said that during an internal review of its derivative portfolio, it noted some discrepancies in these account balances.

The detailed internal review has estimated an adverse impact of approximately 2.35% of bank’s net worth as of December 2024. This could lead to an adverse impact on its net worth by Rs 1,530 crore. The bank’s net worth stood at Rs 65,102 crore as of December 2024.

The banking stock ended 3.86 per cent lower at Rs 900 in the previous session. It hit a 52 week low of Rs 886.40 on BSE. Total 4.49 lakh shares of the firm changed hands amounting to a turnover of Rs 40.47 crore on BSE. The market cap of the bank declined to Rs 70,161 crore.

IndusInd Bank shares were trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.

In a year, the stock of IndusInd Bank has fallen 42.42 per cent and is down 37.24% in six months.

On the bank's CEO tenure, Nuvama Institutional Equities said this was against the board’s application for three years. This is negative, said Nuvama as it believes IndusInd Bank will likely use the one year to transition to a new CEO. Recently, just before the Q3FY25 earnings, IndusInd Bank's CFO had resigned.

On some discrepancies in these account balances in its derivative portfolio, the lender said it has appointed a reputed external agency to independently review and validate the internal findings, without disclosing details on the nature of the discrepancies.

The bank's profitability and capital adequacy remains healthy to absorb this "one-time impact," it added.