IndusInd Bank Shares Slump After New Discrepancy Disclosed
The share price for IndusInd Bank declined over 3% on Friday, after the private lender said it has identified two more accounting issues in internal audits.
An audit by the internal audit department found that Rs 674 crore was "incorrectly recorded as interest" over three quarters of fiscal 2025. This amount was fully reversed as on Jan. 10, 2025, IndusInd Bank informed the exchanges on Thursday.
The bank had first disclosed last month that an internal audit was being conducted into discrepancies in the microfinance business. A report was submitted on May 8, the bank said.
Additionally, a separate investigation was launched by the internal audit team after a whistleblower complaint was filed, alleging concerns in the "other assets" and "other liabilities" account.
This audit, too, revealed Rs 595-crore worth of unsubstantiated balances in the "other assets" accounts of the bank. These balances were set off against corresponding balances in the "other liabilities" accounts in January.
According to research firm Morgan Stanley's estimates, the full-year impact of the discrepancies will be Rs 900 crore on pre-tax basis. It will likely be accounted in fourth quarter earnings. After taking into account the derivative portfolio discrepancy, the cumulative impact will be Rs 3,000 crore on pre-tax basis, and Rs 2,300 crore on post-tax basis.
IndusInd Bank Share PriceÂ
The scrip fell as much as 3.91% to Rs 750 apiece, the lowest level since April 16, 2025. It pared losses to trade 2.05% lower at Rs 764.55 apiece, as of 9:30 a.m. This compares to a 0.19% decline in the NSE Nifty 50.
The stock has fallen 19.60% on a year-to-date basis, and is down 45.18% in the last 12 months. Total traded volume so far in the day stood at 0.45 times its 30-day average. The relative strength index was at 35.16.
Out of 44 analysts tracking the company, 17 maintain a 'buy' rating, 18 recommend a 'hold' and nine suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 12%.
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
