IndusInd Bank shares fell by 25% to 52-week low, know the reason for this big fall

IndusInd Bank stocks fell for the fifth consecutive day. The stocks of the private sector bank fell more than 25% during Tuesday's morning trade. The bank reported certain anomalies in its derivative portfolio.

On Tuesday, IndusInd Bank's share price on NSE fell by Rs 226.90 or 25.20% to Rs 673.60 per share as on 01:45 pm. This is the 52-week low price level of the bank's stocks. Meanwhile, the firm's stock fell by Rs 227.70 or 25.28% to Rs 673.00 per share on the Bombay Stock Exchange. This stock fell the most in the BSE Sensex of 30 stocks.

The market stayed flat in the afternoon session. The market's benchmark indices have reached the red mark. The BSE Sensex is down by 36.65 (0.04%) points to 74,096.50. The NSE Nifty, on the other hand, fell by 19.50 (0.09%) to 22,479.80. IndusInd Bank, in a Monday filing, said during an in-house examination of the derivative portfolio processes, it found certain discrepancies in the account balance.

Mumbai-based IndusInd Bank said in a statement that its detailed internal review estimated an adverse impact of about 2.35 percent on the bank's net worth by December 2024. The review was done following the RBI's instructions issued in September 2023 on the lender's investment portfolio. These instructions were related to the 'other asset and other liability' accounts of the portfolio. According to experts, this could impact IndusInd Bank's net worth by Rs 1,500 crore.

After this disclosure, IndusInd Bank held an analyst call and said that an external auditor is investigating the matter, the report of which is expected by the end of March 2025. However, IndusInd Bank clarified that profitability and availability of capital are able to withstand this one-time adverse impact. Shares of IndusInd Bank fell nearly four percent on Monday. The decline came after the Reserve Bank of India (RBI) decided to extend the tenure of the current CEO of the private sector bank by one year instead of three years.