IndusInd Bank hit by ₹2,100 crore accounting lapse, shares fall 27.17%

IndusInd Bank on Tuesday fought the fallout of a Rs 2,100 crore discrepancy in accounting, saying it has enough reserves and capital to cover for it, but the management's assurance failed to arrest the free fall of shares which tanked over 27 per cent on the bourses.

- OUR CORRESPONDENT

NEW DELHI:

IndusInd Bank CEO and Managing Director Sumant Kathpalia said that the accounting lapse was noted around September-October last year and the bank gave a preliminary update to the Reserve Bank of India (RBI) about this last week.

The final number will be known after the external agency, which the bank has appointed, finalises its report by early April.

In a stock exchange filing, private sector lender IndusInd Bank on Monday disclosed that the bank has noted some discrepancies in its derivatives portfolio which could have an adverse impact of about 2.35 per cent of the bank's net worth as of December 2024 as per its internal review.

Analysts peg the discrepancy at Rs 2,100 crore in absolute terms.

The bank has, in parallel, appointed an external agency to independently review and validate the internal findings.