New Delhi, March 11 -- IndusInd Bank's recent revelation of a 2.35% decline in net worth due to discrepancies in its derivative trades has reignited concerns about the risks inherent in the banking sector. The issue stems from non-compliance with Reserve Bank of India (RBI) regulations on derivatives, enforced from April 2024.

This revelation has reignited concerns about the inherent risks in banking, a point long emphasized by Devina Mehra, Founder & CMD of First Global. In her post on X (formerly Twitter), Mehra explained why she remains a "nervous investor" in banks, citing their structural vulnerabilities.

"Negative surprises will ALWAYS outweigh positive surprises," Mehra wrote, highlighting how banks do not benefit proportionally ...