logo
IndusInd Bank to hold senior management accountable as audit confirms incorrect accounting

IndusInd Bank to hold senior management accountable as audit confirms incorrect accounting

The Hindu28-04-2025

IndusInd Bank announced that it will take necessary steps to hold the personnel responsible for lapses and shift their roles after an independent audit confirmed incorrect accounting.
'The Board is taking necessary steps to fix accountability of the persons responsible for these lapses and re-align roles and responsibilities of senior management,' the bank said in an exchange filing.
The lender will take a hit of ₹1,959.98 crore on profit as estimated by the report, the lender said in the filing. The bank already discontinued internal derivative trades beginning April 1, 2024. 'The report identifies incorrect accounting of internal derivative trades, especially in case of early termination, which resulted in recording of notional profits, as the principal root cause for accounting discrepancy,' IndusInd informed the stock exchanges.
The bank's board must propose a new Chief Executive Officer by late 2025, who would likely be an external candidate with expertise in governance and risk management, to align with RBI's fit-and-proper criteria, said Sonam Chandwani, managing partner at KS Legal & Associates. Additionally, the bank may also face pressure from the board to replace audit committee members to comply with SEBI regulations, she added.
'The Hinduja Group, as promoters, may leverage their increased 26% stake to influence these changes, but any delays could trigger RBI intervention under Section 36AB of the Banking Regulation Act, appointing additional directors to enforce compliance,' Ms. Chandwani added. SEBI may also scrutinise for inadequate reporting to shareholders, which has potential of penalties and stakeholder law suits.
The RBI may investigate lapses and in case that confirms 'wilful misconduct or gross negligence,' the bank may have to face fines, or restrictions on treasury operations, she noted. 'The RBI's history of stringent enforcement suggests swift action to safeguard financial stability,' she added.
Preventive action like real time transaction monitoring independent risk audits and stricter board accountability, will be necessary, she said. 'The bank's aggressive risk-taking culture, prioritising short-term gains, requires a fundamental overhaul,' Ms. Chandwani added.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

BSE's 140% rally cools; shares fall 4% as it slips to ASM Stage 1 watchlist
BSE's 140% rally cools; shares fall 4% as it slips to ASM Stage 1 watchlist

Business Standard

time6 minutes ago

  • Business Standard

BSE's 140% rally cools; shares fall 4% as it slips to ASM Stage 1 watchlist

Shares of India's oldest bourse, BSE, slipped 4 per cent in Wednesday's intraday session after the stock was put under additional surveillance measures following a near 140 per cent surge in the last three months. The exchange's stock fell as much as 4.46 per cent during the day to ₹ 2,871.3 per share, the biggest intraday fall since May 22 this year. The counter has rallied 137 per cent since its March lows and is up 62 per cent on a year-to-date basis. Meanwhile, the benchmark Nifty50 is up 6.5 per cent so far this year. The stock pared losses to trade 4.1 per cent higher at ₹2,881.5 apiece, compared to a 0.44 per cent advance in Nifty 50 as of 1:10 PM. BSE's stock hit a life-high of ₹3,030 apiece on Tuesday (June 10, 2025) while its 52-week low share price is at ₹704.99. BSE has a total market capitalisation of ₹1.17 trillion, according to NSE data. BSE put under Stage 1 of ASM framework The shares of BSE on the National Stock Exchange (NSE) were put under stage 1 of long-term additional surveillance measures. Stocks are moved to the ASM category based on certain criteria given by the NSE. The NSE said that the BSE's scrip price to earnings (P/E) is greater than 50 for the previous four trailing quarters. Given that the stock is under the LT ASM-1, 100 per cent of the traded value will get blocked as margins. Further, pledging of stocks under the ASM category is not allowed. These stocks are eligible for a staged exit after 90 days. BSE option premium volumes slip A decline in the option premium volumes also hurt investors' sentiments after the stock's stellar rally. According to reports, BSE's option premium volumes for the past five days fell to ₹10,824 crore against ₹15,865 crore in April and May. The probable reason for this drop is because of the crackdown by SEBI on hedge funds, reports said. Track LIVE Stock Market Updates Here Derivatives contracts expiry row The Securities and Exchange Board of India (Sebi), earlier said it will limit the expiries of all equity derivatives contracts to two days per week, either Tuesdays or Thursdays. In January 2025, BSE moved its index options expiry to Tuesday, and NSE continued with Thursday expiries. This shift helped BSE gain notable traction in index options premium turnover, with its share rising from 16 per cent to 23.6 per cent in April, according to Goldman Sachs. If Sebi permits NSE's plea of Tuesday expiries, BSE will have to work to retain its recent gains in market share, analysts said. Goldman Sachs expects BSE to switch back to Thursday and see a decline in option premiums by 4 percentage points.

Rupee settles 9 paise higher at 85.57 against US dollar
Rupee settles 9 paise higher at 85.57 against US dollar

The Print

time14 minutes ago

  • The Print

Rupee settles 9 paise higher at 85.57 against US dollar

Foreign institutional investors (FIIs) purchased equities worth Rs 2,301.87 crore on a net basis on Tuesday, according to exchange data. However, a mixed sentiment in the domestic equity markets, a rise in global crude oil prices, and a stronger US dollar against major currencies capped further gains in the local unit, according to forex traders. Mumbai, Jun 10 (PTI) The Indian rupee rose 9 paise to close at 85.57 against the US dollar on the back of strong foreign capital inflows. At the interbank foreign exchange, rupee opened at 85.62 and registered an intra-day peak of 85.51 and a low of 85.68 before settling at 85.57 against the greenback, up 9 paise from its previous close. The local unit had settled at 85.66 against the US dollar on Monday. 'The USD-INR spot pair has been consolidating within a tight range of 85.00 to 86.00, with market participants awaiting a decisive trigger. Comfortable liquidity conditions in the money market, following the cash reserve ratio (CRR) reduction, have led to a softening in forward premiums as interest rate differentials between India and the US continue to narrow. This has made forward hedging less attractive for exporters,' Anindya Banerjee, Head Currency & Commodity, Kotak Securities, said. 'We expect the RBI to stay active in the forex market to curb excessive volatility. On the domestic front, India's relatively stable macroeconomic fundamentals continue to provide a firm underpinning to the rupee,' he said. In the domestic equity market, the 30-share BSE Sensex declined 53.49 points to settle at 82,391.72, while the Nifty edged up to close at 25,104.25. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.15 per cent at 99.09. 'The next significant directional cue for the pair is likely to emerge from risk sentiment and the broader trend in the US Dollar Index (DXY), which is currently attempting to establish a short-term base. A sustained move above the 100.00 mark in the DXY could propel USD-INR beyond the 86.00 resistance, with a potential extension towards 86.50,' Banerjee said. Brent crude, the global oil benchmark, rose 0.18 per cent to USD 67.16 per barrel in futures trade. According to Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan, 'Optimism over talks between US and China led to rise in risk appetite in global markets. However, a positive US dollar and rising crude oil prices capped sharp gains. 'Investors may watch out for CPI data from the US this week. USD-INR spot price is expected to trade in a range of Rs 85.35 to Rs 86,' he added. PTI TRB HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.

Nifty target 26,300 through summer; 3 sectors to lead sector rotation: Laurence Balanco
Nifty target 26,300 through summer; 3 sectors to lead sector rotation: Laurence Balanco

Time of India

time30 minutes ago

  • Time of India

Nifty target 26,300 through summer; 3 sectors to lead sector rotation: Laurence Balanco

Laurence Balanco , Technical Analyst, CLSA , anticipates new highs for the Nifty , targeting 26,300 by summer, followed by a potential consolidation and a move towards 37,000. The market is experiencing rotation into lagging spaces like smallcaps, increasing participation breadth. Financials remain a key leader in the structural uptrend , with real estate and PSUs also expected to contribute to sector rotation . DAX, CAC, the S&P, all are making record highs. What is the screen telling you? Laurence Balanco : We have seen the rest of the world outperform the US since the April low. So, despite the S&P having a meaningful rebound, it really has been the rest of world indices from the ASX 200 to the DAX outperforming the US and you can throw the breakdown in the US dollar as an additional factor generating this relative outperformance. We still see positive price action in the Nifty. The Nifty itself has completed this double bottom pattern that trades back to 26,300. So, new highs for the Nifty is what we are looking for. Back home in the Indian markets, you have been bullish since April after that double bottom formation. But now that the markets are above that 25,000 mark, where do you see the markets headed because the RBI rate cut push on the fundamental side gives a boost to the markets as well. At this price point, should the market hold or can the runup continue from here? Laurence Balanco: In the short term, we can see a bit more of a consolidation, but it does not take away the fact that the double bottom pattern still gives you this upside target of just over 26,300 and so there will be new highs for the Nifty. But in the US market particularly and in the local Indian market also, we have seen some rotation into lagging spaces. Last week, we highlighted the smallcap index which has started to accelerate higher and play catchup after underperforming since peaking in December. We have got a few of these catchup trades starting to develop and that should increase the participation breadth for this advance that we have seen in the Nifty. The dollar index has been quite steady under that 100 mark and has been range bound ever since. What are you making of emerging markets amid a global situation like with a tariff overhang? There are talks between the US and China. We understand the US and Mexico may be reaching a deal. Where do the emerging markets and India stand in this global backdrop? Laurence Balanco: Yes, just going back to that dollar index commentary, the break of 100 we think is meaningful, not only does it end the trading range that you had from 2022, but we think it does mark the peak to the dollar bull market that you have had from the 2011 lows. So, a major trend reversal is playing out. The breakdown from that 2022 to 2025 trading range with the break below 100 gets the dollar index down to the 89 to 90 area. Live Events You Might Also Like: Nifty to climb new high by Sept-Oct; bullish on 3 stocks now: Dharmesh Shah We think at least another 9% downside is likely in the dollar. Historically, we have seen that a weaker dollar has been positive for all the broader emerging market index. The EM versus DM ratio bottomed in December. We have not made any new relative lows. It does look like we are retracing against a trend of underperformance that we have seen over the past 15 years. We really think we are at the beginning of a re-rating in the emerging market basket. While India has not been a top performer year to date, we still think it is going to be one of the top performing or better performing emerging markets and our longer-term upside target for the Nifty still sits at over 37,000. So, the trend is there and continues to improve. That is, of course, 2030, but within the year, where do you see the Nifty range because it seems like Nifty also will try and play catch up with its global peers that are hitting fresh highs. Laurence Balanco: We would not be surprised through the summer months that we get above the 26,300, then potentially see another consolidation period and then step towards that 37,000 area. But yes, the first target we will be focusing on is at 26,300 through the summer. What do you think the texture of the Nifty is going to be? I will come back to the debate on largecaps versus what is happening in SMIDs, but purely within the Nifty because what we have seen since the start of the week is a great sectoral churn at play. The underperformers are pushing up. It is not just financials, but the most unloved sector, FMCG that is propping the index. Is the rally going to get broader with underperformers participating? Laurence Balanco: We have seen a rotation into the laggards right now. We have seen it in the US where the stocks that have performed the worst over the past 12 months have outperformed the best performing stocks over the past 12 months and that has only happened in June. We have seen it in the local market. We are starting to see it in a bit of China too. So, this is a bit of a rotation theme that we are seeing globally. While we do not think there is a change in leadership as the leadership within the Indian market will remain centred around the financials, the underperforming spaces in IT, pharma, and FMCG are likely to continue. But outside of this short-term rebound and rotation into laggards, the structural uptrend from financials is intact and into that 37,000 target that we have, financials will be a key leader. You Might Also Like: Nomura lifts Nifty target price by 1,170 points, unveils 17 top stock picks Other than financials, which sector can participate in this sector rotation? Laurence Balanco : Probably the most recent one that looks very enticing here is still the real estate space. It is not just DLF that we have seen lead, but we have started to see some of the laggards within that come through. So, I definitely highlight real estate as a leadership sector coming through. And then, more broadly the PSU. So, not just PSU banks, but we are starting to see other PSUs also participate and recover, having peaked in July last year, having been the first major sector to have peaked last year, that started to base out and break through that downtrend resistance. So, we would put the PSUs as participating and driving some leadership now.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store