The board members of IndusInd Bank have decided to appoint an independent professional firm to conduct a comprehensive investigation to identify the root cause of the discrepancies in the bank’s derivative portfolio.

As per the exchange filing, the firm will assess the correctness and impact of the accounting treatment of derivative contracts following prevailing accounting standards, identify any lapses, and establish accountability.

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Further, the IndusInd Bank’s promoter has also assured that they are ready to inject additional capital if required.

However, the bank remains well-capitalised, and there is no immediate need for additional capital. In a sensational revelation, on March 10, IndusInd bank said that an internal review found discrepancies in its derivative portfolio, which would have an impact of over 2 per cent on its net worth.

The private sector lender also revealed that the bank had appointed an external agency, PwC, to conduct a review, whose report is still awaited.

The Reserve Bank of India (RBI) had also stepped in to address speculations surrounding the bank. The central bank had assured that the private sector lender remains well-capitalised and financially stable.

The central bank had also said that there was no need for them to react to speculative reports, and affirmed that the bank’s financial health is stable and is being monitored closely by the central bank.

It is to be highlighted that recently, Moody’s has placed the IndusInd Bank’s baseline credit assessment (BCA) under review for a possible downgrade following the disclosure.

It further placed IndusInd’s Ba1 Baseline Credit Assessment (BCA) and adjusted BCA under review for downgrade.

IIHL, the investment arm of Hinduja Group, has recently got RBI’s in-principle approval to raise its stake in IndusInd Bank from 16 per cent to 26 per cent .

IIHL chairman Ashok Hinduja said IndusInd Bank has not sought any fresh capital from its promoters even though it suffered a huge loss in its net worth following an accounting discrepancy.

For the last quarter, (Q3FY25), IndusInd Bank’s Capital Adequacy Ratio stood at 16.46 per cent , Provision Coverage Ratio was 70.20 per cent.