IndusInd flags discrepancies of ₹1,530 crore in derivatives

The discrepancies amount to an estimated adverse impact of about 2.35% of its net worth

- Anshika Kayastha

IndusInd Bank Ltd has flagged discrepancies of about ₹1,530 crore in its derivatives account balances, with managing director and chief executive officer (CEO) Sumant Kathpalia saying the issue could have led the regulator to extend his term by only one year instead of three.

An internal review of processes relating to accounts of the derivative portfolio revealed these lapses, the company said in a filing. These amount to an estimated adverse impact of about 2.35% of the bank's net worth as of December 2024. The lender's net worth on 31 December stood at ₹65,102 crore.

IndusInd Bank has appointed an external agency to independently review and validate the internal findings while keeping the Reserve Bank of India (RBI) in the loop.

The internal review was carried out following the implementation of revised norms issued in September 2023 under the RBI Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions). These were applicable from 1 April 2024.