Whats wrong with IndusInd Bank
What is wrong with IndusInd Bank IndusInd Bank had on Monday disclosed that an accounting miss could wipe about Rs 2,100 crore from its net worth after a change in RBI norms. IndusInd Bank bled on the bourses on Tuesday, with its stock logging its biggest-ever decline, falling More then 27 % single day This stock reaction followed the Mumbai-headquartered lender’s disclosure on Monday that an accounting miss could wipe about Rs 2,100 crore from its net worth. The issue was spread over multiple years and related to transactions in the derivatives segment. But the bank’s Chief Executive Officer said he expects the private lender to clock a profit in the March quarter — and the entire FY25 — despite the hit. What’s the issue at IndusInd Bank In 2023, the RBI directed some changes regarding the investment portfolio of banks which kicked in from April 1, 2024. Earlier, banks’ asset liability management and treasury desks could do internal swaps, where one cash flow can be exchang...