It can be noted that Indusind was asked by the RBI to disclose its unaccounted losses, which the bank said would be 2.35% of its networth of Rs 64,000 crore as of December 2024, and which many analysts are counting upwards of Rs 2,000 crore as the book is yet to be cleaned up from the derivatives positions in its forex trading and forex deposit books.
Following the disclosure, the bank’s shares tanked 27% the next day. The bank shares are down more than 40% since March, which may see the stock exiting both the Sensex and Nifty soon.
Apart from the RBI probing its books, the chartered accountants body ICAI has also reportedly suo moto began to look into the books of the bank.
The regulator has also ordered all banks with large foreign exchange derivatives books and forex deposits to furnish details of their overall positions and also the hedged and unhedged positions as it does not want the problem to have any contagion effect on the system.
“The board and the management of the bank have been directed by Reserve Bank to have the remedial action completed fully during the current quarter, after making required disclosures to all stakeholders,” the central bank said.
“As such, there is no need for depositors to react to the speculative reports at this juncture. The bank’s financial health remains stable and is being monitored closely by Reserve Bank,” the central bank added.
The statement also noted that based on the disclosures made available in public domain, the bank has already engaged an external audit team (PwC) to comprehensively review their current systems, and to assess and account for the actual impact of (not accounting for the year of accumulated losses from its forex derivatives book) expeditiously.