IndusInd Bank's Profit Puzzle: Derivatives Discrepancies Raise Questions

IndusInd Bank has recognized inconsistencies in its derivatives portfolio that could damage its profit to the tune of Rs 1,500 crore. The bank calculates a 2.35% blow to its net worth that could go as high as Rs 2,000 crore. An outside audit is currently in progress to authenticate these estimates. In spite of this, IndusInd Bank guarantees that its capital adequacy and profitability are robust enough to bear the brunt. The news has brought about a fall in the stock price of the bank and created apprehensions regarding leadership stability after the CEO's one-year extension of his tenure.

 

Source: Moneycontrol, Economic Times, Business Today