IndusInd Bank Shares Jump As External Report Shows Lower Impact From Derivative Discrepancies

IndusInd Bank Ltd.'s share price jumped 2.46% following the release of an external report on Tuesday which revealed a financial impact of Rs 1,979 crore due to derivative accounting discrepancies. This figure represents 2.27% of the bank's net worth as of Dec. 31, 2024, and the bank plans to account for this impact in its fiscal 2025 results.

On March 10, the lender disclosed that it had identified discrepancies in account balances within its derivative portfolio. An internal review estimated an impact of approximately 2.35% of the bank's net worth as of December 2024. The external agency's report, received on April 15, 2025, confirmed these discrepancies and quantified the negative impact at Rs 1,979 crore.

Macquarie has maintained an 'outperform' rating on the stock with a target price of Rs 1,210. The impact of the discrepancies is limited to 2.27% of net worth, which is slightly lower than the internal review's estimate of 2.35%, the brokerage noted. This is incrementally positive in the near term, it said.

Morgan Stanley has maintained an 'equal-weight' rating with a target price of Rs 755. The external agency's findings are largely in line with management estimates, the brokerage said. It will closely track the comprehensive audit report for further insights. Morgan Stanley expects the fourth-quarter earnings to provide more clarity on trends, margins, growth, and asset quality.

The scrip rose as much as 2.46% to Rs 754 apiece. It pared gains to trade 1.29% higher at Rs 745.40 apiece, as of 09:32 a.m. This compares to a flat NSE Nifty 50 Index.

It has fallen 50% in the last 12 months. Total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 49.

Out of 45 analysts tracking the company, 19 maintain a 'buy' rating, 19 recommend a 'hold,' and seven suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 20%.