Indusind shares plummeted by 27%

  • Indusind shares melted on March 11, 2025, marking their worst trading day ever, closing at ₹655.95.

  • The decline followed the bank's disclosure of accounting discrepancies in its derivatives portfolio, which raised concerns about its financial health.

  • An internal review revealed that these discrepancies could lead to an estimated 2.35% reduction in the bank's net worth, approximately ₹1,600-2,000 crore as of December 2024.

  • This revelation was prompted by new guidelines from the Reserve Bank of India (RBI) issued in September 2023 regarding the classification and valuation of investment portfolios.

  • Analysts have expressed concerns over weak internal controls and governance issues within the bank, prompting several brokerages to downgrade their stock ratings.

  • The stock has lost over 37% in the past six months, with a significant drop of 16% in just the last four weeks.

  • In response to the situation, IndusInd Bank has initiated an independent review by an external agency to validate its findings and address internal processes.

  • The market reaction reflects heightened investor anxiety as the bank navigates through this financial turmoil.

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