IndusInd Bank's Recovery: Navigating Financial Turbulence

IndusInd Bank's shares faced volatility after reporting a Rs 2,329 crore loss for the March quarter. Incorrect accounting practices and stress in microfinance and two-wheeler segments were identified. The interim management, led by Sunil Mehta, aims to rectify past errors and reinvigorate the bank.

IndusInd Bank witnessed a rollercoaster in its stock performance on Thursday, with shares initially plummeting nearly 6 percent following an announcement of a substantial Rs 2,329 crore loss in the March quarter, attributed to incorrect accounting practices.

The tumultuous trading saw the stock recover, closing higher on both the BSE and NSE. This recovery came despite the fresh identification of Rs 5,014 crore in slippages, rooted mainly in microfinance and the two-wheeler segment.

Under interim management led by Sunil Mehta, IndusInd Bank is addressing internal glitches, including past erroneous derivative trades and accounting entries, while assuring stakeholders of future stability and initiatives to reinvigorate the institution.

(With inputs from agencies.)