Indias Indusind Bank rises on smaller than expected hit of accounting lapse

By Siddhi Nayak and Hritam Mukherjee April 16 (Reuters)-The shares of Indusind Bank rose to 4.2% on Wednesday, a day after the private lend shooter said it would take a smaller-than-expected hit on his net worth following an external review of previously reported accounting contradictions. Indusind was the top profit on the Nifty 50 index of India, which was subdued, and the bank index, which rose 0.6%. The increase follows a jump of 7% in the shares the previous day. The bank, after the market Tuesday, said it was a hit of 2.27% to its net worth of December end against the previous assessment of an impact of 2.35%. Indusind, India’s fifth largest private money shooter by assets, struggled with increased bad loans in the microfinance segment, which led to a decline in profit in the last two quarters. The shares have dropped by 15% since March 10, when the bank differed in the way it discussed currencies, which rayed back at least six years, with an estimated $ 175 million impact. A clever hit is “incrementally positive in the short term, as the impact of contradictions will be limited to what was previously determined by management,” Brokerary Macquarie said. Macquarie and Morgan Stanley both said that the focus would shift to a forensic audit report, and that the cause of the contradictions by investors will be watched closely. “The valuations of Indusind remain attractive from a medium-to-long-term perspective,” says Kranthi Bathini, director of stock strategy at WealthMills Securities. (Reporting by Siddhi Nayak in Mumbai and Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala) first published: 16 Apr 2025, 11:18 am