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IndusInd Bank’s shares gained 4% after bank received the findings of the external audit on the discrepancies in its derivatives portfolio
IndusInd Bank Share Price Today
IndusInd Bank Share Price: IndusInd Bank shares rose 4% in early trade on April 16 after the lender disclosed that an independent external review had quantified the adverse impact of derivative-related discrepancies at Rs 1,979 crore — a figure lower than market expectations.
The probe was initiated after the bank flagged potential issues related to its derivatives portfolio and engaged an external expert to evaluate the extent of the impact. According to the findings, the loss—assessed as of June 2024—is expected to reduce the bank’s net worth by 2.27% as of December 2024.
Despite the substantial headline number, analysts noted that the quantified impact was less severe than many had feared, offering a degree of relief to investors. The stock surged following the announcement, reflecting optimism that the worst of the uncertainty around the matter may be over.
In its regulatory filing, IndusInd Bank confirmed that the issues pertained to certain derivative contracts with a corporate client. The bank reassured that it is taking appropriate corrective actions, including legal measures and strengthening internal risk management protocols.
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.
