IndusInd Bank clarifies on share price, volume movement; what analysts say

IndusInd Bank Ltd said on Thursday that the recent movement in its share price and trading volume was driven by market trends. "In this regard, we inform that the Bank has made all necessary disclosures in accordance with the provisions and principles of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and that, the Bank has not withheld any material information / event which may have a bearing on the price / volume behaviour in the Bank's scrip. Accordingly, we believe that the recent price /volume behaviour in Bank's scrip is market driven," the crisis-hit private lender stated.

Earlier this month, the Reserve Bank of India (RBI) indicated that the ongoing accounting issues would be resolved "very soon". "The IndusInd Bank issue should settle very soon. We will keep monitoring it. The bank has taken enough steps to improve the accounting issues and, on the whole, it is doing well," said RBI Governor Sanjay Malhotra.

The bank, in its first earnings report after uncovering accounting discrepancies, recorded a consolidated net loss of Rs 2,328.92 crore in the January-March 2025 quarter as against a profit of Rs 2,349.08 crore in the corresponding period last fiscal.

IndusInd disclosed a potential internal fraud involving Rs 172.58 crore which had been incorrectly recorded as fee income during FY25. In addition, the bank noted that a cumulative amount of Rs 670 crore in the microfinance business had been wrongly recorded as interest income during the first nine months of FY25 and was fully reversed as of January 10, 2025.

The bank also reported unsubstantiated balances, totalling Rs 595 crore, in its 'other assets' accounts, which were offset against corresponding balances in 'other liabilities' accounts.

Some market experts have turned positive on the counter but with a note of caution due to its high-risk nature. One expert emphasised the importance of closely watching the upcoming quarterly results and the lender's approach to corporate governance.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that IndusInd Bank is emerging from a phase of recent negative developments. "From a long-term standpoint, current valuations appear attractive. Investors with a high-risk appetite may consider accumulating the stock. However, it remains crucial to monitor the upcoming quarterly results and the lender's handling of corporate governance," he also said.

Ravi Singh, Senior Vice-President of Retail Research at Religare Broking, said the stock looked strong on charts and could move towards Rs 860 level in the near term, adding that investors should keep a stop loss placed at Rs 825.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, highlighted that IndusInd Bank is currently in a consolidation phase. "A sustained breakout above the Rs 850–855 zone could trigger strong upward momentum, potentially pushing the stock toward the Rs 880–900 range. On the downside, the Rs 800–820 band is likely to act as a strong support area," he stated.

Meanwhile, IndusInd Bank shares settled 1.54 per cent lower at Rs 837.50 today. At this closing price, the counter has climbed 6.82 per cent in a month.