India's central bank is examining derivatives exposures of some private and state-run banks days after IndusInd Bank disclosed lapses in its derivatives accounting, three sources said on Wednesday.

The forex transaction development, which follows a less-than-expected extension given to managing director Sumant Kathpalia, has shaken investor confidence

By Nandan Mandayam and Siddhi Nayak (Reuters) -Shares of Indian private lender IndusInd Bank fell more than 22% to an over four-year low on Tuesday, a day after it reported discrepancies in accounting related to forex derivatives that could lead to a one-time hit to earnings.