IndusInd Bank witnessed a significant drop of 27%, reaching Rs 656, resulting in a substantial loss of Rs 19,000 crore in market value, attributed to a Rs 2,100 crore derivatives accounting discrepancy. This discrepancy led to a 2.4% decrease in the bank’s net worth, sparking concerns about governance and risk management among investors. The repercussions of this event have rippled across the banking sector, impacting other small private banks such as Bandhan Bank and RBL. The market turbulence caused by these developments has raised apprehensions among investors regarding the stability and transparency of operations within the banking industry in India.