After a turbulent week where IndusInd Bank’s share price dropped 28%, investors finally saw some relief. On March 18, 2025, the stock rebounded 5.19% to ₹707 per share, following a statement from the Reserve Bank of India (RBI) that reassured investors about the bank’s strong capital position.
However, concerns remain due to an estimated ₹2,100 crore accounting discrepancy, which had previously triggered a sharp sell-off. With the RBI asking IndusInd Bank’s board to complete corrective actions by Q4 FY25, many investors are wondering—is this rally sustainable, or just a dead cat bounce?
Also read: INDUSIND Bank stock analysis and expert insights in detail
What did the RBI say?
The RBI issued a statement confirming that IndusInd Bank:
- Is well-capitalised and has a satisfactory financial position
- Has a Capital Adequacy Ratio (CAR) of 16.46% (above the regulatory requirement)
- Maintains a Provision Coverage Ratio (PCR) of 70.2%
- Holds a Liquidity Coverage Ratio (LCR) of 113%, comfortably above the 100% requirement.
The RBI also directed IndusInd Bank to:
- Fix the ₹2,100 crore accounting issue by the end of March
- Engage external auditors for a detailed review
- Make all required disclosures to stakeholders
Why did IndusInd Bank shares crash 28%?
The stock’s decline was triggered by the bank’s admission of an accounting discrepancy related to its derivatives valuation, which had an estimated impact of 2.35% on its net worth.
HDFC Mutual Fund increases stake in IndusInd Bank
While retail investors were wary, HDFC Mutual Fund saw an opportunity. The fund house increased its holdings from 4.82% to 5.02% by purchasing an additional 15.92 lakh shares on March 11, 2025.
This move signals institutional confidence in the bank’s fundamentals despite the recent controversy.
You may also read: NSDL IPO set for launch: Key details you should know
Should you buy IndusInd Bank shares now?
Reasons to be optimistic
RBI assurance: The regulator has reaffirmed the bank’s strong financial position.
Capital strength: The bank’s 16.46% CAR and 113% LCR indicate stability.
Institutional support: HDFC Mutual Fund’s increased stake suggests confidence in long-term value.
Potential for recovery: The stock already rebounded 5%, showing signs of stabilisation.
Reasons to be cautious
Accounting discrepancy concerns: The ₹2,100 crore issue is still under investigation.
High volatility: The stock saw a 37% drop in 20 trading sessions, and more fluctuations could follow.
Bearish sentiment: Some analysts believe this is a temporary bounce, with downside risks still present.
Analyst downgrades: Firms like Kotak Securities and Mirae Asset have revised their targets lower.
Brokerage views on IndusInd Bank stock
| Brokerage | Rating | Target Price | Reasoning |
| ICICI Securities | Reduce | ₹850 | Internal control concerns due to derivatives issue |
| Kotak Securities | Reduce | ₹750 | Uncertainty over leadership and derivatives losses |
| Mirae Asset | Hold | ₹750 | CFO resignation and regulatory scrutiny concerns |
| Lakshmishree Investment & Securities | Cautious | ₹551 (support level) | High volatility and possible further correction |
While some brokerages maintain optimism, others advise caution due to ongoing risks.
You may also like: MTNL jumps 18% to 3-week high-what’s fueling the surge?
Final thoughts
The 5% rally is encouraging, but investors should proceed with caution. The stock remains volatile, and much depends on how the bank resolves its ₹2,100 crore accounting issue. Short-term investors: Might want to wait for clarity before making a move.
Long-term investors: Could consider accumulating at lower levels, given the bank’s strong capital base.
