The sudden announcement by IndusInd Bank on Monday of an internal review that had uncovered certain discrepancies in its derivative accounting practices prior to April 2024, negatively impacting the lender by an amount equivalent to 2.35% of its net worth (₹15.3 billion), has understandably caused considerable consternation in the market. The bank’s stock fell 27% on Tuesday.IndusInd Bank has appointed an external agency to do an independent review, based on the results of which it would adjust its financial statements. Despite the share price fall, the bank’s balance sheet remains healthy with a capital adequacy ratio of 17.2%, and a common equity tier 1 ratio of 15.8%.
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