On Tuesday, IndusInd Bank officially disclosed a ₹1,979 crore post-tax hit stemming from discrepancies in its derivatives portfolio. This revelation has prompted a wave of commentary from leading brokerages, which largely view the issue as manageable, though they highlight the need for close monitoring.

Here’s a quick roundup of what top brokerages are saying about the development:

Macquarie: Outperform | Target Price: ₹1,210

Macquarie has maintained its 'Outperform' rating on IndusInd Bank with a target price of ₹1,210. The firm noted that the impact from the derivative discrepancies is limited to 2.27% of the bank’s net worth — a figure marginally lower than what the bank had estimated in its internal review. Macquarie views this as incrementally positive for the stock in the near term, signaling that the worst might already be priced in.

Morgan Stanley (MS): Equal-weight | Target Price: ₹755

Morgan Stanley has kept an ‘Equal-weight’ stance on IndusInd Bank with a target price of ₹755. The brokerage highlighted that an external agency has confirmed the derivative discrepancy losses are largely in line with the management’s earlier estimate of a 2.35% impact on the bank’s F3Q25 net worth. However, Morgan Stanley emphasizes two key factors for future stock direction:

a) findings from the comprehensive audit report, and

b) the bank’s upcoming Q4 earnings.

The firm suggests that while the immediate hit is quantified, further clarity will emerge post-audit.

CITI: Buy | Target Price: ₹890

CITI has reiterated its ‘Buy’ rating on IndusInd Bank, assigning a target price of ₹890. According to CITI, the external agency's report quantified the adverse impact of the derivative portfolio discrepancies at ₹1,979 crore, or 2.27% of the bank’s net worth — slightly below the bank’s own internal review. The brokerage considers this an encouraging sign, suggesting limited downside from this issue.

While IndusInd Bank’s ₹1,979 crore hit from derivative discrepancies raised eyebrows, the consensus from major brokerages leans toward relief that the actual loss is marginally lower than initially feared. Investors will now closely watch the comprehensive audit findings and the bank’s Q4 earnings to assess the longer-term impact.

Disclaimer:

The views and investment recommendations mentioned in this article are sourced from various brokerage reports and are for informational purposes only. They do not constitute financial advice. Readers are advised to consult with a certified financial advisor before making any investment decisions. The author and the website are not responsible for any financial losses based on this content.