The shares of one of the leading financial services banks in India jumped upto 6 percent in the day’s trade followed by reports of lower than estimated impact on company’s financial statements.
Price Movement
With a market capitalization of Rs 58,140 lakh crores, the shares of IndusInd Bank Ltd were by 6 percent and made an intra-day high of Rs 780 compared to the previous close of Rs 735.85.
What Happened
The report by the external agency showed Rs1,979 crores of negative impact on the net worth of the bank due to derivative discrepancies, Based on the report the bank said that it has assessed an adverse impact of 2.27 percent to its net worth as of 2024
The impact is lower than RBI’s assessment of approximately Rs 2,000 crore. While the lender’s internal audit had estimated an adverse impact of 2.35 percent on net worth, the external agency report puts that number lower by eight basis points.
In an exchange filing, IndusInd Bank said that the impact of this derivative debacle will be reflected in the FY25 financial statements. Last month, the crisis-hit lender appointed an independent firm to carry out a probe into the lapses found by the bank related to its derivatives portfolio
About the company
IndusInd Bank is one of India’s leading financial services companies engaged in banking solutions and partners for approximately 42 million customers across the country, including individuals, large corporations, various government entities, and PSUs.
Its banking network spans 3063 branches/ banking outlets and 2993 ATMs spread across India, covering over 1,60,000 villages. The Corporate and Wholesale Banking segment includes lending to and deposits from corporate customers. The Retail Banking segment includes lending to and deposits from retail customers.
Financial Highlights
This company reported a revenue of Rs 12,801 Crores in Q3 FY25 up by 9.6 percent, from it Q3 FY24 revenue of Rs 11,572 crores, It posted a net profit of Rs 1,401 crore in Q3 FY25, down by 39 percent, from its Q3FY24 net profit of Rs 2,298 crores.
Written By Sanjay G
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
