IndusInd Bank Shares Crash Over 20% to 52-Week Low Amid Estimated ₹2,000 Crore Net Worth Hit

The stock value of IndusInd Bank experienced a major market downturn, reaching its lowest point of ₹720.35 on Tuesday, March 11, 2025 while declining by 20%. A review within the bank created an estimated negative impact on net worth that reached 2.35% for December 2024. The stock drop was recorded as the largest decline since March 2020.

Investors received news from IndusInd Bank which showed a net worth drop expectation between ₹1,600 crore and ₹2,000 crore. Input from multi-year derivatives transactions explains why the reported account records do not match. The Hinduja-promoted lender plans to spread the loss across earnings of the fourth quarter of its current financial year or the first quarter of the subsequent financial year.

The bank’s internal review had soon started after the Reserve Bank of India (RBI) issued its master directions for lender derivative portfolios during September 2023. The assessment focused on the bank's Outside Asset and Outside Liability ledger systems to determine unexplained variations in account value. The bank selected an experienced outside firm to examine its internal review results independently, while IndusInd Bank will determine any financial statement effects based on this external organization's final report.

Bank's Assessment of Financial Health

IndusInd Bank maintains positive profitability and capital adequacy ratios to handle this single-time financial impact on its net worth. A board meeting of the bank took place on Monday following trading hours to discuss the issue while the exchange reporting process occurred after the session ended.

Recent Financial Performance

The standalone net profit of IndusInd Bank had declined by 39% to ₹1,401 crore during its December quarter when comparing performance to the equivalent period in the earlier year where it reached ₹2,298 crore. The company reported PAT figures at ₹1,401 crore, surpassing analysts’ predictions of ₹1,282 crore. The bank experienced an NII decline from ₹5,296 crore to ₹5,228 crore, while Net interest margins decreased to 3.93% during Q3FY24.

Shares of IndusInd Bank finished at ₹900.6 on the BSE's trading session on Monday right before announcing the review results thus resulting in a 3.9% price drop. During the previous year, the stock price decreased 42%, and it displayed a 1% decline during the last five years. On Monday the market value of the company reached ₹70,161 crore. The stock value of IndusInd Bank dropped by 20% after the official announcement.

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