IndusInd’s share price plummeted this year. It is now the Nifty 50 company with the lowest performance. In the past five weeks it has plummeted, reaching Rs 645, its lowest point since November 2020 and a staggering 62% lower than its peak in 2024. The article explores the reasons why IndusInd’s stock is in freefall and what we can expect for this year.
IndusInd shares have crashed in price
IndusInd is a leading Indian private bank that has been under pressure for the last 12 months because it continues to perform below its competitors like Bajaj or Kotak.
It has been a long-running crisis, but it got worse in October of last year after the company published poor financial results. The net interest income for the second quarter fell by 1%, to Rs 5,347 crores. Meanwhile, its net profit dropped by almost 40% to Rs 1,331 crores.
The Q3 25 financial results continued this trend. Net interest income fell by 1%, to Rs5,228 crores. The net interest margin also decreased to 3.93%. IndusInd’s net profit dropped by 39% to Rs 1,402 crores in the third quarter.
Its microfinance business has been a major factor in the company’s ongoing decline. The company’s business is high-risk and fast-growing. It is a high-risk business because it offers unsecured loans. The default rate on these loans has been increasing in recent years.
IndusInd’s share price is also falling due to the slow growth of its high yield loans.
In March, the crash became more intense after it was revealed that there were discrepancies in its portfolio of derivatives. The company found mismatches between account balances for past derivatives trades. RBI previously ordered an internal audit and banned all internal hedge trades.
IndusInd bank has experienced some issues with leadership in recent years. The RBI chose to only extend the tenure of the CEO by one year, instead of three years as requested by the management. This is an indication that the RBI may be having some leadership problems.
Can the IndusInd Stock Recover?
In India, the ongoing IndusInd share price crash is an anomaly. Other companies are performing well. Bajaj Finance, for example, is this year’s best performing company on the Nifty Index as its stock price has risen by 30%.
This year, other Indian banks such as Kotak Mahindra (ICICI), Axis Bank (HDFC), State Bank of India, and ICICI have made small gains.
IndusInd risks losing customers as the confidence in its products and services dwindles. It is difficult to resolve the crisis within the microfinance sector, so the loss crisis could continue.
Management has claimed that bank’s CET-1 ratio is 15% higher than global firms. The RBI may request more reserves due to the lack of confidence.
IndusInd bank share price analysis
Weekly chart of IndusInd shows a steep decline in the stock price since its peak at Rs 1,673 during mid-2024. Recently, it fell below Rs743.50 – its low point from June 2022 – the main support.
As the Exponential Moving Avgs. (EMA) of 50 and 200 weeks crossed, the stock also formed a Death Cross pattern. The MACD and Relative Strength Index both point downwards.
The stock is likely to continue dropping as the sellers aim for the important support level of Rs550. It is possible that the downtrend will continue. A move above the important resistance level at Rs745 would invalidate a bearish forecast.
The post Can the IndusInd Bank stock price rebound? This post appeared on ICD
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