IndusInd Bank Share Price in Focus on Receiving External Audit Report

IndusInd Bank has received an external audit report identifying discrepancies in its derivative transactions. The report, submitted on April 15, 2025, estimated a negative impact of ₹1,979 crore as of June 30, 2024. This translates to 3.1% of the bank’s net worth at that point, which stood at ₹63,815 crore.

As of 9:25 am on April 16, 2025, IndusInd Bank share price is trading at ₹741.15, up 0.71%, but down 44.95% over the past six months and 50.29% over the past year.

Revised Estimates and Disclosure

The bank stated that, based on the findings, the post-tax impact on its net worth as of December 2024 is estimated at 2.27%. The earlier internal review had pegged this figure at approximately 2.35%. As of December 31, the bank’s net worth was ₹65,102 crore. The impact will be reflected in the financial statements for FY25.

Timeline and Internal Review

Discrepancies were first disclosed by IndusInd Bank on March 10, 2025, when it reported irregularities worth around ₹1,530 crore in its derivative portfolio. The internal audit identified the issue, and an external agency was appointed to independently review the findings. The bank also appointed a forensic auditor, Grant Thornton, to investigate further.

Regulatory and Management Updates

On March 7, the Reserve Bank of India approved only a one-year extension for the bank’s CEO. A few days later, the discrepancies were made public. The CFO had resigned in January 2025. The RBI later clarified that the matter was being monitored and did not indicate broader risk to the banking system.

According to news reports, in the next few months, the company may lose at least three top executives, potentially including CEO Sumant Kathpalia and Deputy CEO Arun Khurana, the latter of whom was in charge of global markets and the derivatives portfolio.

As of March 31, 2025, net advances stood at ₹3,43,298 crore, compared to ₹3,66,889 crore in the previous quarter. Deposits were ₹3,84,793 crore, down from ₹4,09,554 crore. 

Conclusion

The bank has stated it will update its financials accordingly and take steps to strengthen internal controls around derivative accounting.

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