Separately, IndusInd Bank has assured investors that it will fully reflect these adjustments in its FY24-25 financial statements and continue to bolster internal controls.
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ANUSHREE FADNAVIS
Shares of IndusInd Bank, India’s fifth-largest private lender, trading higher by one per cent on Monday at ₹830 on the NSE, following the conclusion of a comprehensive investigation into the root cause of its forex derivatives related accounting discrepancies. Analysts and brokerages noted that the final figures on potential hits are closely aligned with initial management estimates, offering reassurance to investors.
Morgan Stanley, a leading global brokerage, stated that the audit report’s findings confirm the loss is in line with management’s expectations and believe this outcome reduces potential downside risk. The brokerage has maintained an equal-weight rating on the stock with a target price of ₹755.
The investigation, conducted by Grant Thornton, confirmed that the issue stemmed from incorrect accounting of internal derivative trades, particularly during early terminations, which led to notional profits and accounting mismatches. The total impact of these discrepancies, as determined by the independent review, stands at ₹1,960 crore as of March 31.
The Board has already taken decisive steps: it is realigning senior management roles and ensuring accountability for those responsible, demonstrating a commitment to governance and transparency.
Separately, IndusInd Bank has assured investors that it will fully reflect these adjustments in its FY24-25 financial statements and continue to bolster internal controls.
Analysts believe that with the enquiry now complete and corrective actions underway, investors focus will now shift to the bank’s ability to accelerate growth while maintaining asset quality controls.
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Published on April 28, 2025
