The bank’s financial numbers, he noted, are strong with an operating profit of over ₹11,000 crore for the nine months so far. “The hit of this ₹1,600 crore is not much.”
He pointed out that the issues were identified by the management, not the auditors, and said the market should appreciate the bank’s transparency in acknowledging the problem and making provisions.
The bank’s capital adequacy remains strong at over 15% even after the recent provisioning, he noted, adding that “As and when further capital is required, promoter will always be with the company… Once we get RBI approval, we will immediately infuse more equity in bank as required.”Shares of the Mumbai-based private lender tanked over 25% today, after the stock got more downgrades and target price cuts following the bank’s latest disclosure to the exchanges of an adverse impact on its networth due to discrepancies in its derivatives portfolio management.
After market closing on March 10, IndusInd Bank informed the exchanges that the discrepancies relate to internal positions taken to hedge forex deposits or borrowings.
The lender estimates an adverse impact of 2.35% of its net worth during the first nine months of the current financial year. It plans to take a ₹15,800 crore hit post-tax during the March quarter due to these findings.
In an analyst call, IndusInd Bank CEO Sumant Kathpalia, also mentioned Reserve Bank of India’s (RBI) possible concerns about his leadership, as he received a one-year extension instead of three-year term recommended by the board.
First Published: Mar 11, 2025 2:13 pm IS