New Delhi, March 11 -- It takes years to build trust, but just seconds to break it. No one knows this better than IndusInd Bank Ltd's investors as they see the bank's stock crumble amid back-to-back negative developments.

On Monday, after market hours, the private sector lender informed the stock exchanges about discrepancies in its derivatives portfolio pertaining to transactions done in the past five to seven fiscal years (FY24 and earlier). Investors dragged the stock down more than 25% on Tuesday. "A negative derivatives' disclosure has the potential to unnerve investors more than a back-dated NPL disclosure," wrote analysts from Nuvama Research in a 10 March report.

IndusInd's internal review estimates an impact of 2.35% on its net...