IndusInd Bank's share price dropped nearly 2% on Wednesday, despite the broader market trading on a bullish note. The reason why IndusInd Bank shares are under pressure is due to its accounting lapse woes. As per the latest reports, Mumbai's Economic Offences Wing (EOW) is likely to launch a preliminary enquiry into the bank.
IndusInd Bank Share Price:
After market hours of August 13, IndusInd Bank shares plunged by 1.2% to close at Rs 773.50 apiece, with market cap of Rs 60,259.97 crore. The stock has dropped by nearly 2% to hit an intraday low of Rs 766.90.
IndusInd Bank Accounting Lapse:
Mumbai's Economic Offences Wing, while speaking to CNBC-TV18, said they have recorded statements from staff members linked to the offices of the bank's former Chief Financial Officer (CFO) and former Deputy CFO. They added that Sumant Kathpalia, Managing Director and CEO of IndusInd Bank, and Arun Khurana, another senior official, will be summoned in due course to record their statements.
It needs to be noted that Mumbai's EoW has recorded statements of staff members of former CFO and DY CFO of the bank.
The woes of IndusInd Bank related to its accounting reports emerged after it identified Rs 1,979 crore discrepancies in its derivatives account after an external audit report. This followed a series of exits from top management at IndusInd Bank including CEO and CFO.
Sumant Kathpalia resigned from his post of Managing Director & CEO, Key Managerial Personnel of the Bank with effect from April 29, 2025. His resignation came after Arun Khurana, who was the whole-time director and deputy CEO of the bank, rendered his resignation with immediate effect on April 28.
Khurana along with the CEO Sumant Kathpalia of IndusInd Bank have been under RBI's radar since last month. In March, RBI cut short IndusInd Bank's CEO Kathpalia's tenure for 1 year till March 23, 2026, compared to the three-year tenure that IndusInd Bank was mulling. As per reports, RBI asked IndusInd's CEO and Deputy CEO to resign from their positions due to accounting lapses in the bank, however, IndusInd has denied these allegations.
During Q1FY26, IndusInd bank reported Net Profit of Rs 604 crore as compared to Rs 2,171 crore for Q1 FY25. While its net interest income stood at Rs 4,640 crore in Q1FY26 as compared to Rs 5,408 crore in Q1 FY25.
In July 2025, Sunil Mehta, the Chairman of the Board of Directors, IndusInd Bank said, "The Bank has delivered clean and profitable Q1 results, marking a robust recovery from the challenges of the previous quarter. Leadership transition is progressing well, with our final recommendations being submitted to the regulator. The Board remains confident of moving forward as per planned timelines. The Committee of Executives has ensured seamless continuity and effective execution during this phase. The Bank has taken decisive action on legacy issues, strengthened governance, and enhanced operational controls."
As of June 30, 2025, the Bank's distribution network included 3,110 branches/ Banking outlets and 3,052 onsite and offsite ATMs, as against 3,013 branches/banking outlets and 2,988 onsite and offsite ATMs, as of June 30, 2024. The client base stood at approx. 42 million as on June 30, 2025.
Should You Buy IndusInd Bank Shares?
" We have revised down the credit growth to 8% CAGR (FY25-27) vs 11% earlier. NIMs remain flat at 3.5% vs 3.5% QoQ (if adjusted for one-offs during Q4FY25). Bank reported profit of Rs.6bn vs loss last quarter (Q4FY25) due to one-time expenses during Q4FY25. We have revised downwards the estimates by 1%/2% for FY26/27E BV respectively. We maintained "SELL" rating with a TP of Rs680 at P/ABV of 0.8x FY27E (earlier 0.75x FY27E) as management appointments are to be finalized soon by RBI," said analysts at IDBI Capital.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
Click it and Unblock the Notifications
Sign in with Google