Mumbai: IndusInd Bank was recently forced to disclose a large accounting irregularity to the tune of ₹2,100 crore (₹21 billion), and the Reserve Bank of India (RBI) has since directed the bank’s board to complete corrective measures over the course of the current quarter. This week’s disclosure of the discrepancy reportedly reduced the lender’s net equity by around 2.35%. This caused an instant plummeting of the share price of the bank itself.
IndusInd Bank has already appointed an external audit team to conduct a detailed review of its systems to assess the reality of impact. The RBI advised the board and management to finalise all corrective actions by March, after making the necessary disclosures to stakeholders. It also urged depositors not to respond to market speculations and reassured clients and investors of the sound financial condition of the bank.
The RBI first noticed the anomaly sometime in September and October 2023. We will verify the final figures after an external auditor provides a report in early April.
IndusInd Bank: Standalone net profit fell 39% on-year to ₹1,401 crore for the December quarter as against ₹2,298 crore during the quarter last year. This was more than market expectations of ₹1,282 crore. Q3FY24 NII was ₹5,296 crore, compared to ₹5,228 crore in the previous quarter. The net interest margin (NIM) recently shifted downwards, too, to 3.93%, versus 4.29% in Q3 FY24 and 4.08% in Q2 FY25.
IndusInd Bank, whose shares closed at ₹900.6 on the BSE, down 3.9%, compared to the SensEx fall of 0.29% on Monday. The lender’s shares have lost 42% over the last year and 1% over five. It has a market cap of ₹70,161 crore.