On Saturday, March 15th, RBI concluded their speculation surrounding the IndusInd Bank derivative accounts. RBI said the Bank was “well-capitalised, and the financial position remains satisfactory.” Based on these statements from the Reserve Bank, the share price of IndusInd Bank will likely rise and recover from the losses suffered in the past week.
RBI on IndusInd Bank
The IndusInd Bank will now engage in remedial actions regarding the Rs. 2,100 crore discrepancy. At the same time, an external audit team will assess the situation and predict the weight of the impact the Bank suffered.
“The Board and the management have been directed by the Reserve Bank to have the remedial action completed fully during the current quarter, viz., Q4FY25, after making required disclosures to all stakeholders,” RBI said.
An update received by the RBI from IndusInd clearly states that the lapse in accounts was around September and October of last year.
The Central Bank stated that IndusInd Bank reported a Capital Adequacy Ratio of 16.46 percent and a Provision Coverage Ratio of 70.2 percent for the December 31st, 2024 quarter. However, the Bank crossed the 100% Liquidity Coverage Ratio (LCR), reaching 113% (as of March 9th, 2025).
These statements and reviews from the RBI came to us after IndusInd Bank reported the derivative accounts. They stated they could cause damages worth 2.35% of its net worth.
As of today, March 17th 2025, IndusInd Bank is trading well since the opening bell. The opening rates were 705, nearly 4.8% higher than the previous session’s close of 672.3.
IndusInd Share Price in Today’s Market
At 9:45 a.m., IndusInd Bank trades their shares at 703.5 for one. It is nearly 0.2% lower than the opening rate. And 4.3% higher than its previous close. According to the reports and estimates on Money Control, the current market capitalisation shows 54,689 cores; the UC Limit is 739.55, and the LC Limit is 605.15.
Company Financials
IndusInd Bank, a leading financial corporation in the private sector, struggled to maintain its momentum in trading this past week. The discrepancies in the Bank’s derivative portfolio impacted them heavily, leading investors to lose trust and resulting in a stock drop.
The Bank declared its third quarter financials of FY 2024-25 on January 31st. During the quarter, IndusInd Bank’s net profit plummeted by 39% to Rs. 1,401 crore, compared to Rs. 2,295 in the previous fiscal year’s same quarter. The Net Interest Income (NII) also took a dive to Rs. 5,228 crore from Rs. 5,296 crore in the last Q3.
Recent News About IndusInd Bank
- The RBI granted only a one-year extension for CEO Sumant Kathpalia instead of the typical three-year term.
- In March 2025, IndusInd Bank reported discrepancies in its derivatives portfolio, which adversely affected the Bank’s net worth of December 2024 by approximately 2.35%
- Concluding a probe, the central Bank assured customers and investors that there was no cause for depositor concern.
IndusInd Bank Share Price Target
According to market experts on Trendlyne, IndusInd Bank has an average target of 1343.09. The consensus estimates an upside of 91.20% from the last price of 702.45.
Should You Buy, Sell, Or Hold?
Most of the analysts on Money Control and Trendlyne support buying the shares. On Money Control, 34% of analysts recommend holding the shares, and only 2% suggest selling. Before investing in IndusInd Bank, consider its long-term performance and consult your analyst to make the perfect move.
