IndusInd Bank stock crashes as derivative portfolio hit invites downgrades
IndusInd Bank share price: IndusInd Bank share fell to its lowest level since June 2020 on discrepancy in derivative portfolio news
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IndusInd Bank share price: IndusInd Bank share came under heavy selling pressure on Tuesday, March 11, 2025, after a massive discrepancy in the private bank derivative portfolio invited a string of downgrades from analysts amid low earnings visibility.
The stock crashed 20 per cent, hitting its lowest level since June 2020 to an intraday low of Rs 720 per share. IndusInd Bank share, however, recouped margianlly to trade 18.7 per cent down at 10:00 AM. By comparison, the benchmark BSE Sensex index today was down 0.35 per cent.
Analysts at Nuvama Institutional Equities, for instance, have downgraded the scrip to Reduce from Hold, feeling uncomfortable with a series of negative developments at the bank, and fearing a hit on the lender credibility.
IndusInd Bank has faced multiple negative events in the current financial year (FY-2024-25; FY25), including microfinance stress, resignation of the chief financial officer (CFO) ahead of the December quarter results, only a one-year extension for the incumbent chief executive officer (CEO) instead of three, and now a potential hit on the net worth due to the portfolio discrepancy. A negative derivatives disclosure has the potential to unnerve investors more than a back-dated bad loan disclosure, analysts at the brokerage said in their note on Tuesday. It has cut the target price on IndusInd Bank to Rs 750 from Rs 1,115.
On Monday, India fifth largest private bank disclosed to shareholders that during an internal review, t
2025-03-11
By
Anushka Tripathi
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