IndusInd Bank Bounces Back After Heavy Losses: A Tale of Accounting Woes and Recovery
IndusInd Bank shares rebounded after reporting severe losses due to accounting faults, with interim management addressing irregularities. Despite early trading losses, shares closed higher, highlighted by a major inaccuracy within their microfinance segment. New leadership assures corrective actions have positioned the bank for future stability.
- Country:
- India
IndusInd Bank saw its shares recover on Thursday, closing about 2% higher after initially dropping nearly 6% following a reported Rs 2,329 crore loss in the March quarter. This downturn marked the lender's worst performance, driven by a deep-clean by interim management addressing improper accounting practices.
Despite a poor start to trading, IndusInd's stock fell 5.89% to Rs 725.65 on the BSE but rebounded to finish 1.82% higher at Rs 785.10. The dramatic recovery brought the stock to be the biggest gainer among Sensex and Nifty firms.
Much of the bank's losses stemmed from a misclassified Rs 1,800-crore microfinance book stress and issues in the two-wheeler segment, leading to fresh slippages of Rs 5,014 crore. New non-executive leader Sunil Mehta assures stakeholders that all issues are resolved, aiming to steady the bank's course forward.
(With inputs from agencies.)
Google News