IndusInd Bank up 13% in 3 days as PwC pegs lower impact in derivative biz

With the estimates by the external agency in-line with the management's announcement, it is expected to restrict any major downside, ICICI Securities said.

IndusInd Bank’s shares has moved higher by 4 per cent to ₹767.65 on the BSE in Wednesday’s intraday-day trade amid heavy volumes after the external agency, PwC — appointed to validate the findings of its internal review — identified discrepancies in its derivatives portfolio and estimated a negative impact of ₹1,979 crore as of June 30, 2024. The bank said it received the report from the external agency on April 15.

 

Shares of IndusInd Bank are trading higher for the third straight day, surging 13 per cent during the period.

 

In four trading days, between March 6 and March 12, the stock price of IndusInd Bank had tanked 38 per cent as the lender was hit by a major accounting discrepancy.   Read Stock Market Live Updates Today

 

 

On March 10, 2025, IndusInd Bank had disclosed that it discovered certain discrepancies in account balances of its derivative portfolio. The internal review by the Bank had estimated an adverse impact of approximately 2.35 per cent of the Bank’s net worth as of December 2024.   ALSO READ | ICICI Prudential jumps 6% after reporting Q4FY25 results, declares dividend

 

On Tuesday, March 15, after market hours, IndusInd Bank informed the stock exchanges that it has received PwC’s final report quantifying the loss from the discrepancies in its derivative portfolio, at ₹1,979 crore, translating to a 2.27 per cent post-tax hit to its net worth as of December 2024—slightly lower than the bank’s earlier estimate of 2.35 per cent.

 

The Bank said it will appropriately reflect the resultant impact in the financial statements for FY 2024-25 and continue to take suitable steps to augment the internal controls relating to the derivative accounting operations of the Bank.

 

The bank plans to reflect this in FY25 results and enhance internal controls. Meanwhile, the Reserve Bank of India (RBI) has directed a forensic probe by Grant Thornton Bharat, which is underway.

 

With the estimates by the external agency being in-line with the management's announcement, it is expected to restrict any major downside. Q4FY25 results remain a critical monitorable, given probability of utilisation of contingent provision to report profit despite recognition of the derivative losses, ICICI Securities said in a note.  ALSO READ | Max India shares hit 20% upper circuit, stock up 30% in 3 days; Here's why

 

Meanwhile, IndusInd Bank's March 2025 quarter shareholding pattern reveals that Foreign Portfolio Investors (FPIs) increased their holding in the bank by nearly 5 percentage points to 29.5 per cent. FPIs held 24.7 per cent stake in IndusInd Bank at the end of December 2024 quarter, data shows.

 

However, domestic mutual funds (2.76 percentage points), insurance companies (1.84 percentage points) and provident funds/pension funds (0.88 percentage points) have cut their holding in IndusInd Bank by up to nearly 3 percentage points, the shareholding pattern data shows. The promoter & promoter group stake in IndusInd Bank reduced to 15.83 per cent from 16.29 per cent. Retail individual shareholders, however, have increased their holding in the bank to 17.9 per cent from 16.2 per cent.