- Stock Performance
- Shares surged 7.12% on April 16 to ₹788.25 on the BSE
- Rebounded nearly 24% from the March 25 low of ₹637.30
- Rally followed positive external audit findings
- PwC External Review Findings
- Discrepancies in derivatives portfolio estimated at ₹1,979 crore (as of June 30, 2024)
- Post-tax impact: 2.27% of net worth (₹65,102 crore as of Q3FY25)
- Lower than internal review estimate of ₹1,580 crore (2.35% of net worth)
- Analyst Insights
- Macquarie Capital: Impact is “incrementally positive” as it aligns closely with prior estimates
- Focus now shifts to:
- Outcome of forensic audit report by another external agency
- Root cause analysis of the discrepancies
- Clarity on management succession plans
- Leadership and Governance
- RBI granted only a 1-year extension to MD & CEO Sumant Kathpalia
- The board had recommended a full 3-year term
- Kathpalia hinted the RBI’s decision may be linked to the portfolio issue
- Market Sentiment and Future Focus
- Citi note: PwC’s report confirms marginally lower impact than internal findings
- Investor attention now on:
- Completion of the forensic audit
- RBI’s governance stance
- FY25 financial statements reflecting the derivative losses
