IndusInd Bank Shares Decline on Renewed Accounting Concerns

Shares of

k witnessed a fall of approximately 4% on Friday as brokerages revised their earnings forecasts downwards following the emergence of fresh accounting issues. Analysts suggest that after adjusting for an additional ₹674 crore in interest income that was incorrectly recorded, the bank's core Net Interest Margin (NIM) appears to be 17 basis points lower than the reported figure. This adjustment has prompted several brokerages to reduce their earnings projections for the bank. This development follows the bank's disclosure that an internal audit identified the misrecording of ₹674 crore as interest over three quarters of FY25, which was subsequently reversed in January. The audit also revealed unsubstantiated balances of ₹595 crore in 'other assets' that were offset against 'other liabilities'. These fresh concerns add to the existing challenges faced by IndusInd Bank, including previously reported irregularities in its derivatives portfolio and the recent resignations of its CEO and Deputy CEO. The cumulative impact of these accounting issues is being closely monitored by investors and analysts.