How IndusInd Bank's Stock Has Performed Since Disclosure Of Derivatives Discrepancy

IndusInd Bank Ltd.'s shares have declined nearly 11% since March 10 when the first disclosure was made by then Chief Executive Officer Sumant Kathpalia.

On March 10, 2025, Kathpalia had said during an analyst call that these derivative trades took place over five to seven years ago and came to light when the bank took the review of the portfolio after the RBI's accounting framework, which was identified by September and October 2024.

Soon after, the bank started an internal review in the matter and informed the regulator about it. The bank had also appointed an external agency PwC to validate its internal findings.

In the latest development, the Securities and Exchange Board of India has barred former Kathpalia and four others from dealing in the share market.

SEBI said they were aware of unpublished price sensitive information about the lender's derivative trades. IndusInd Bank's former executive director and deputy CEO, Arun Khurana, along with head of treasury operations Sushant Sourav, head of GMG operations Rohan Jathanna, and chief administrative officer of consumer banking operations Anil Marco Rao are the other officials named in the order.

The individuals have been restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner until further orders, the SEBI said in an interim order on Wednesday.

IndusInd Bank stock fell as much as 10.73% since March 10 to Rs 805.15 apiece on the NSE, at close on Wednesday. The nearly 11% decline compared to a 10.21% advance in the benchmark Nifty 50 since March. 10.

The scrip has declined 44.83% in the last 12 months and fell 16.14% on a year-to-date basis. About 53% of the analysts have changed their target prices for the counter over the past month, according to Bloomberg.

Ten out of the 47 analysts tracking the bank have a 'buy' rating on the stock, 15 recommend 'hold' and 22 suggest 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 752.27, implying a downside of 6.6%.