Shares have dropped over 28 per cent since the Reserve Bank of India decided to extend the term of CEO Sumant Kathpalia's by a year. Investors Service of the rating agency has placed IndusInd Bank's Ba1 long-term foreign and local currency deposit and issuer ratings with a stable outlook while placing its ba1 Baseline Credit Assessment (BCA) under review for a potential downgrade following the bank's disclosure of discrepancies in its derivatives portfolio, which could result in a Rs 2,000 crore loss in the March 2025 quarter. Moody's says that the review for downgrade reflects concerns over these accounting discrepancies along with stress in the retail unsecured loan portfolio which could affect the bank's profitability, capital, and funding. Moody's also highlighted uncertainty regarding leadership changes at IndusInd Bank.