IndusInd Bank Shares Crash 26%, Losing ₹18,300 Crore in Market Value

IndusInd Bank’s stock plummeted 26.13% on Tuesday, marking its lowest level since November 2020. The sharp decline came after the bank revealed accounting discrepancies in its derivatives portfolio, amounting to 2.35% of its net worth as of December 2024.

This revelation triggered heavy trading activity and led several brokerages to cut their target prices for the stock. The bank estimated a financial impact of around ₹2,100 crore, as mentioned in an analyst call.

According to Citi, IndusInd Bank now faces a crucial test in selecting its next leader, with the board expected to consider both internal and external candidates. The recent issues have also raised concerns about higher borrowing costs and increased risk perception.