IndusInd Bank reported derivative losses of ₹2,100 crore on March 10, 2025, leading to a 23% decline in its share price:
Financial contracts whose value depends on an underlying asset, index, or rate . It is Used for hedging risks, speculation, and portfolio diversification. Common underlying assets: Stocks, bonds, commodities, currencies, interest rates, and market indexes. Standardized contracts allow investors to speculate on future currency exchange rate movements. Traded on stock exchanges, unlike Over-the-Counter (OTC) derivatives which are private.
