ET Explainer: Internal trades & a hedge too far
IndusInd Bank has reported discrepancies in its derivatives portfolio related to transactions spanning the last 7-8 years. These issues arose from internal trades involving low-liquidity instruments, such as 3-6-year yen and 8 to 10-year dollar borrowings.
Is IndusInd turmoil a one-off or one of many? RBI wants to know
The RBI is examining whether unhedged forex liabilities are an issue specific to IndusInd Bank or a broader banking problem. IndusInd Bank disclosed discrepancies in its derivative portfolio, possibly resulting in significant financial losses. Banks have been instructed to provide detailed hedging information and ensure compliance with guidelines.
Sebi cuts timeline to complete rights issues to just 23 days
In a circular on Tuesday, Sebi came out with the revised timelines for completion of the various activities involved in rights issue process from the date of board of directors of the issuer approving it to the date of closure of the issue.
IndusInd & Out: Rs 19,000 crore lost in a day
The private bank on Monday said its net worth could take a 2.35% hit to the tune of roughly ₹1,600 crore as of December 31 on account of underestimation of foreign exchange hedging costs. Analysts said these were internal foreign exchange derivatives based on the bank’s forex borrowings and deposits.
Derivatives with new toppings back on menu
After years, choppy markets have revived the trades on over-the-counter (OTC) currency derivatives as corporates fish around for fancy deals at modest (or, even zero) cost to guard themselves from fluctuations in foreign exchange rates.
Indian equities to recover lost ground in 2025: Morgan Stanley
The brokerage said a likely positive shift in fundamentals is not in the price and it expects Indian equities to recover the lost ground against its peer group through the rest of 2025.