IndusInd Bank's Shares Surge Despite Derivative Lapses

IndusInd Bank's stock surged despite the bank reporting a negative impact of Rs 1,979 crore on its net worth due to accounting lapses in its derivatives portfolio. The stock gained over 7% in value even after the external agency PwC confirmed the accounting errors' adverse effects.

IndusInd Bank's shares experienced a significant rally, jumping over 7% on Wednesday, as the banking institution disclosed a substantial Rs 1,979 crore impact on its net worth due to accounting errors in its derivatives portfolio.

This surge marks the third consecutive day of gains for the bank's stock, which closed at Rs 788.25 on the BSE, hitting an intraday high of Rs 794.35. This made IndusInd Bank the top gainer among the Sensex and Nifty companies.

The bank's market value increased by Rs 4,082.25 crore to a new valuation of Rs 61,408.97 crore. Despite the accounting lapses, the bank remains committed to addressing the issues, having appointed PwC to evaluate and suggest remedial actions.

(With inputs from agencies.)