Indusind Bank surged 5.80% to Rs 778.50 after an external audit allayed investor fears regarding a significant discrepancy in the bank's derivative portfolio.
The rally comes after a global audit firm completed an independent review of IndusInds books, quantifying the discrepancy at Rs 1,979 crore as of 30 June 2024. Crucially, the post-tax impact on the banks net worth is pegged at 2.27% as of December 2024marginally better than the banks own internal estimate of 2.35% disclosed last month.The bank first flagged the issue on 10 March 2025, and was quick to initiate both internal and external reviews. In its latest statement, IndusInd said it would reflect the impact in FY25 financials and strengthen internal controls to prevent future lapses in derivative accounting operations. Investors welcomed the banks transparency and timely disclosures.
The stocks rebound was also aided by value buying. After months of underperformancedown 43% in six months and nearly 49% over a yearbargain hunters returned, finding the banks current valuation too attractive to ignore.
IndusInd Bank offers a wide range of products and services for individuals and corporates, including microfinance, personal loans, personal and commercial vehicle loans, credit cards and SME loans.
The banks standalone net profit declined 39% to Rs 1,401.28 crore while total income increased 8.5% YoY to Rs 15,151.01 crore in Q3 FY25 over Q3 FY24.
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