Bank Battles Trust Issues After Q4 Loss
IndusInd Bank is going through a tough time after posting its first quarterly loss in nearly 20 years—₹2,328 crore in Q4FY25. The loss comes after serious issues like misreporting in derivatives, accounting mistakes, and top-level exits. These problems led to a sharp 30% fall in its stock price in March 2025. From a high of ₹1,550 in June 2024, the stock dropped to ₹606, before slightly recovering by 24%.
The big question now is: has the worst already passed?
Many brokerages have either downgraded the stock or paused their coverage. But some experts are still hopeful because of low valuations and strong support from the promoter, Hinduja Group. Some feel that while the issues are serious, the worst might already be reflected in the current share price.
The stock now trades at just 0.7 to 0.8 times its expected FY27 book value—lower than even Yes Bank during its crisis days. Experts say that though the bank is not facing any capital or solvency risk, it may take months for investor confidence to return.
Investors Still Cautious but Not Leaving
Despite the problems, mutual funds still own a major portion of the bank. Promoters hold 16.5%, mutual funds and foreign investors together hold 57%, and the rest is with public and others. Big investors like HDFC, ICICI Prudential, and Invesco have not exited completely.
Most brokerage firms like CLSA, Goldman Sachs, and Morgan Stanley have cut their ratings. Yet, some still have target prices in the ₹635–700 range. Kotak believes the bank is trying to fix the problems and has a fair value estimate of ₹800.
Promoter Support Holds Hope
Experts say that the Hinduja Group’s backing gives some relief to investors. Even with no confirmed new CEO yet, the stock has not crashed further. The bank hopes to turn the page in FY26 with a fresh start—but the road to recovery may be long and full of challenges.
