The PWC report engaged by IndusInd Bank to quantify the losses due to discrepancies in its derivative portfolio has put the final number of the negative impact on the bank's net worth at Rs 1979 crore, the bank said in a stock market disclosure.
Based on the report, the IndusInd Bank said it has assessed an adverse impact (on a post-tax basis) of 2.27% to the bank’s net worth as of December 2024 on account of these discrepancies. The final number by PWC is slightly lower than the 2.35% of net worth hit, the bank had estimated in March. The bank received the report from the external agency on April 15.
"The bank will appropriately reflect the resultant impact in the financial statements for FY 2024-25 and continue to take suitable steps to augment the internal controls relating to the derivative accounting operations," IndusInd Bank said.
PWC was hired by the bank to quantify the derivative losses which came to light in October 2024. IndusInd shocked markets on March 10, by announcing that marked to market (MTM) derivative losses could cause the bank losses of up to 2.35% of its net worth as of December 2024 (about Rs 1600 crore). PWC had completed its findings on the losses, ET had reported in its April 12 edition.
The after shocks of this disclosure had eroded the value of the bank's shares by roughly 25% of their value to Rs 686 per share from Rs 900 per share just before the disclosure. The shares have since recovered some losses to close at Rs 736 per share on Tuesday.
Separately, the bank has also hired global professional services firm Grant Thornton Bharat (GTB) to conduct a forensic check after a directive from the Reserve Bank of India (RBI) to appoint a new firm to investigate the discrepancies in its derivatives portfolio.
GTB was hired last month with a mandate to identify the root cause of the bank's MTM derivative losses, find lapses and fix accountabilities within the bank as the regulator wants a thorough check with a conservative estimate of the losses, ET had reported in its March 23 edition.
GTB’s investigation is ongoing and it was hired since PWC could not do the forensic audit since it had done work with the bank earlier. It is unclear how soon GTB will submit its rport.
Meanwhile, provisional data released by the bank on April 4 showed a 2 percentage point decline in term and CASA deposits in the March quarter compared to the December 2024 quarter,
In an exchange filing, the bank stated that deposits in its current and savings accounts grew by 32.8% as of the end of the March 2025 quarter, compared to 34.9% growth in the December 2024 quarter.
The bank’s total deposits grew modestly by 0.4% sequentially, reaching Rs 4.11 lakh crore as of March 31, 2025. On a year-on-year basis, total deposits increased by 6.8%, compared to an 11% growth in the December quarter.
Based on the report, the IndusInd Bank said it has assessed an adverse impact (on a post-tax basis) of 2.27% to the bank’s net worth as of December 2024 on account of these discrepancies. The final number by PWC is slightly lower than the 2.35% of net worth hit, the bank had estimated in March. The bank received the report from the external agency on April 15.
"The bank will appropriately reflect the resultant impact in the financial statements for FY 2024-25 and continue to take suitable steps to augment the internal controls relating to the derivative accounting operations," IndusInd Bank said.
PWC was hired by the bank to quantify the derivative losses which came to light in October 2024. IndusInd shocked markets on March 10, by announcing that marked to market (MTM) derivative losses could cause the bank losses of up to 2.35% of its net worth as of December 2024 (about Rs 1600 crore). PWC had completed its findings on the losses, ET had reported in its April 12 edition.
The after shocks of this disclosure had eroded the value of the bank's shares by roughly 25% of their value to Rs 686 per share from Rs 900 per share just before the disclosure. The shares have since recovered some losses to close at Rs 736 per share on Tuesday.
Separately, the bank has also hired global professional services firm Grant Thornton Bharat (GTB) to conduct a forensic check after a directive from the Reserve Bank of India (RBI) to appoint a new firm to investigate the discrepancies in its derivatives portfolio.
GTB was hired last month with a mandate to identify the root cause of the bank's MTM derivative losses, find lapses and fix accountabilities within the bank as the regulator wants a thorough check with a conservative estimate of the losses, ET had reported in its March 23 edition.
GTB’s investigation is ongoing and it was hired since PWC could not do the forensic audit since it had done work with the bank earlier. It is unclear how soon GTB will submit its rport.
Meanwhile, provisional data released by the bank on April 4 showed a 2 percentage point decline in term and CASA deposits in the March quarter compared to the December 2024 quarter,
In an exchange filing, the bank stated that deposits in its current and savings accounts grew by 32.8% as of the end of the March 2025 quarter, compared to 34.9% growth in the December 2024 quarter.
The bank’s total deposits grew modestly by 0.4% sequentially, reaching Rs 4.11 lakh crore as of March 31, 2025. On a year-on-year basis, total deposits increased by 6.8%, compared to an 11% growth in the December quarter.
