IndusInd Bank shares tank 27% after lender flags impact on networth

Shares of IndusInd Bank slipped 27% to ₹656.80 on the National Stock Exchange (NSE) on March 11, a day after the bank flagged an adverse impact on its networth due to a discrepancy on accounting for derivatives holdings.

The lender estimated the impact to be at 2.35% of its net worth.

IndusInd Bank found out the discrepancy in an internal audit, according to exchange filings.

Going by the information on the bank’s website with respect to its Q3FY25 earnings, its networth was ₹65,102 crore as of December 2024. As per the bank’s estimate, the impact would be about ₹1,530 crore.

Brokerage agencies downgraded IndusInd Bank’s rating following the exchange filings.

“We believe this event will shake investor confidence on franchise value. While valuation look low, book value sanctity is under question,” Prakhar Agarwal, Banking & Financial analyst at Elara Securities, said in a statement.

“We are yet to cut earnings estimates, given a pending external report, but earnings downgrade is imminent,” he added.

“We downgrade to Sell from Accumulate with a lower TP of INR 830 from INR 1,020,” said Mr. Agarwal.