Negative disclosures could cause IndusInd Bank's net worth to decline by Rs 1,577 crore.

Following the private lender's announcement of a possible impact of Rs 1,577 crore on its net value, IndusInd Bank shares will be the focus of attention on Tuesday.

In the last session, the stock dropped almost 4% to Rs 900.50 on the NSE. almost the previous six months, IndusInd Bank's stock has dropped by almost 37%, with a 16% drop in the last four weeks alone.

During an internal analysis of its derivative portfolio, the bank discovered disparities that could cause its net worth to drop by an estimated 2.35%. With an emphasis on their "Other Asset and Other Liability" accounts, this examination was carried out in response to the Reserve Bank of India's (RBI) September 2023 guidelines for investment portfolios for lenders. On March 10, IndusInd Bank disclosed in a regulatory filing that it has discovered disparities in some account balances associated with its derivative transactions.

"The Bank discovered some disparities in these account balances during an internal review of procedures pertaining to the Other Asset and Other Liability accounts of the derivative portfolio following the implementation of RBI Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), September 2023, which includes accounting of derivatives, applicable from April 01, 2024. An detrimental impact of roughly 2.35% of the bank's net worth as of December 2024 has been calculated by a thorough internal examination," the statement stated. The bank explained that, as of December 2024, the estimated financial impact of the disparities is around 2.35% of its net value. IndusInd Bank has enlisted an outside organization to verify its internal conclusions in order to guarantee correctness. The bank will make the necessary adjustments to its financial accounts once the final report from this external examination is received.

In spite of this possible setback, IndusInd Bank guaranteed that its capital sufficiency and profitability would be sufficient to withstand the one-time financial effect.