Shares of IndusInd Bank were buzzing on Dalal Street today, rising over 4% to Rs 766.50 in early trade and emerging among the top gainers in the banking pack. The surge comes despite recent concerns around discrepancies in the bank’s derivative portfolio.
So, let’s take a look at what fuelling the rally-
Audit report confirms smaller impact than feared
On April 15, IndusInd Bank informed the stock exchanges that an external audit by PwC had confirmed a discrepancy of Rs 1,979 crore in its derivative portfolio. While this figure might appear alarming, what brought relief to investors was the quantified damage, a 2.27% post-tax reduction in net worth as of December 2024, which is slightly better than the bank’s earlier internal estimate of 2.35%.
“The Bank has assessed an adverse impact (on a post-tax basis) of 2.27% to the Bank’s Net Worth as of December 2024 on account of these discrepancies,” said IndusInd Bank through a regulatory filing.
Transparency and swift disclosure
Another reason behind the rally in the stock price of the lender is the way the bank handled the situation, disclosing both the internal review and the external audit findings.
“The Bank will appropriately reflect the resultant impact in the financial statements for FY 2024-25 and continue to take suitable steps to augment the internal controls relating to the derivative accounting operations,” added the lender in the exchange filing.
Sharp rebound from lows
Another reason for today’s jump is technical. The stock had recently been beaten down, falling sharply over the last six months. In fact, IndusInd Bank has lost 43% in the past six months and nearly 49% on a one-year basis. Year-to-date in 2025, it is still down by 21%. But this correction has made valuations attractive.
The share price of IndusInd Bank has surged over 4% in the early trade today. Over the past five days, the stock has delivered a 10% return, while the one-month gain stands at 13%. However, the longer-term picture remains weak, with the stock down 43% over the last six months and 49% on a one-year basis. Year-to-date in 2025, it has declined by 21%. The stock’s 52-week high is Rs 1,550.00, while the low stands at Rs 606.00The bank maintains a market capitalisation of Rs 59,520 crore.