IndusInd Bank Shares Fall Over 5% After ₹30 Crore GST Penalty, Stock Faces Ongoing Pressure Amid Derivative Probe

Mumbai: IndusInd Bank’s shares experienced a sharp decline of over 5 per cent on Tuesday following an announcement that the bank had been slapped with a Rs 30.15 crore penalty by GST authorities in Thane. The penalty was imposed due to various issues related to the Goods and Services Tax (GST). The bank’s stock price fell by as much as 5.32 per cent, reaching Rs 633.55 per share on the Bombay Stock Exchange (BSE), contributing to the growing pressure on the lender’s stock.

In a regulatory filing made on March 24, the private lender revealed that the penalty was issued by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate. The bank indicated that it may explore the possibility of filing an appeal against the GST order, adding to the uncertainty surrounding its financial standing. This penalty comes amid an already challenging period for IndusInd Bank, which is grappling with multiple financial hurdles.

Derivative Discrepancies Weighing Down Stock Price

The GST penalty comes on the heels of another significant issue for IndusInd Bank — a probe into discrepancies found in its derivative portfolio. The revelation of these discrepancies caused the bank’s stock price to plummet by a staggering 27 per cent in a single day, marking one of the worst declines for the bank in its history. The discrepancies in its derivative accounts are expected to have an adverse impact of about 2.35 per cent of the bank's net worth, contributing to a lack of investor confidence.

As a result of these ongoing concerns, IndusInd Bank shares have faced severe selling pressure in recent weeks. Over the past month, the stock has plunged by 35 per cent, and it has shed 30 per cent of its value on a year-to-date basis. The stock’s performance over the last six months has been even more dismal, with a drop of 54 per cent. Additionally, over the past two years, the stock has fallen by 34 per cent, reflecting a long-term downtrend in its value.

Investor Sentiment Remains Negative

At 2:42 PM on Tuesday, IndusInd Bank’s shares were trading 4.452 per cent lower at Rs 638.90 per share on the BSE. The combination of the GST penalty and the ongoing derivative probe has put considerable pressure on the stock, and investor sentiment remains negative.

The bank now faces a challenging period ahead as it navigates through these financial issues. With its stock underperforming, market analysts will closely monitor any further developments, especially regarding the appeal against the GST penalty and the resolution of the derivative portfolio discrepancies.