IndusInd Bank Shares Rise as Derivatives Probe Reveals Lower-than-Expected Impact

Shares of

k saw a positive uptick today, gaining 4%, following the conclusion of an independent probe into its derivatives portfolio. The investigation revealed a total impact of ₹1,979 crore due to certain lapses, a figure that appears to be lower than some market estimates, providing relief to investors. The bank had initiated the independent inquiry to address concerns and irregularities identified within its derivatives portfolio. The findings of this probe have now been disclosed, suggesting a manageable financial impact that has been seemingly absorbed positively by the market. Meanwhile, there were reports from CNBC-TV18 suggesting potential leadership changes at the bank. Sources indicated that the IndusInd Bank board is likely to identify CEO candidates 4-6 months before the current CEO, Sumant Kathpalia's term concludes in March 2026. The report also mentioned the possibility of three senior-level exits, including the CEO and deputy CEO. However, IndusInd Bank has officially denied receiving any such communication regarding these potential exits. International brokerage firm Macquarie has maintained an "outperform" rating on IndusInd Bank's shares, citing the limited impact from the derivative discrepancies. Macquarie reiterated its target price of ₹1,210, which represents a significant 64.5% upside from the previous closing price. This positive outlook suggests confidence in the bank's underlying fundamentals despite the earlier concerns. Morgan Stanley also weighed in, keeping its "equal-weight" rating intact with a price target of ₹775. The brokerage noted that the probe's findings were largely in line with previous estimations. Morgan Stanley stated that it will closely monitor the detailed findings from the comprehensive audit report, along with the bank's upcoming quarterly earnings, for further insights.