IndusInd Bank share price gains 12% in 3 days; stock up 21% from Sept lows

IndusInd Bank share price rallied today amid reports that the Economic Offences Wing (EOW) of the Mumbai Police found no lapses in the lender's finances

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IndusInd Bank shares staged a smart recovery from the day’s low level, bouncing nearly 4 per cent intraday. The buying interest in IndusInd Bank shares emerged amid reports that the Economic Offences Wing (EOW) of the Mumbai Police found no lapses in the lender's finances.  

According to reports, the EOW found no evidence of any criminal conduct, or signs of fund siphoning or manipulation, by former executives of IndusInd Bank in connection with the ₹1,950 crore and ₹258 crore accounting discrepancies identified earlier by the bank. 

IndusInd Bank, on its part, has neither confirmed nor denied any such development. Business Standard, too, couldn’t independently verify the report.

 

IndusInd Bank share price: Why is the stock rising?

According to a report by CNBC TV18, the Mumbai Police EOW has found "no evidence" of criminal conspiracy behind the mis-valued internal derivative trades, worth ₹1,950 crore, accumulated since financial year 2015-16 (FY16).

 

The financial goof up, according to the report, was a "genuine accounting error and not a case of fund diversion or manipulation", as per EOW.

 

The Economic Wing also examined another ₹258 crore entry that surfaced later. As per EOW, this entry, too, seems to be non-fraudulent with no evidence of siphoning of funds or criminality.

 

The EOW has also given a clean chit to former officials of IndusInd Bank, including ex-MD & CEO Sumant Kathpalia, ex-Deputy CEO Arun Khurana, and CFO Gobind Jain.

 

That said, the Mumbai Police EOW said it will likely close the case once they have responses from the Reserve Bank of India (RBI) on certain "technical queries".

 

IndusInd Bank share price history

 

On the bourses, IndusInd Bank share price rose 3.8 per cent from the day's low level of ₹858.65 per share to hit a high of ₹891.95 per share on the BSE. The stock climbed 3.1 per cent compared to the previous session's closing price.

 

At 12:43 PM, IndusInd Bank shares were up 1.2 per cent (₹875 per share) as against a 0.4 per cent gain in the benchmark BSE Sensex index.

 

Around 0.58 million shares have changed hands on the counter on the BSE, higher than the two-week average volume of 0.30 million shares.

 

Including today's high, IndusInd Bank stock has gained 11.6 per cent in the past three sessions. Further, from its recent low of ₹712.85 (closing basis), touched on September 26, 2025, the stock has surged 21.2 per cent on the BSE (till Wednesday). By comparison, the Sensex index is up 5 per cent during the period.

 

The stock hit its 52-week low level of ₹605.4 per share on March 12, 2025, and has recovered approximately 43 per cent since then.  CATCH STOCK MARKET LIVE UPDATES TODAY

IndusInd Bank shares: Brokerages' views

Analysts at Systematix Institutional Equities and Antique Stock Broking have 'Hold' ratings on the stock. Their share price targets, however, are lower than the current market price of the stock.

 

Systematix Equities assigned a target price of ₹800 per share to IndusInd Bank after it announced its Q2FY26 results; Antique Broking pegged the same at ₹780 per share.

 

The lender had reported a net loss of around ₹440 crore in the September quarter, against the Street's estimates of a net profit of ₹460 crore), mainly due to accelerated write-offs of ₹1,600 crore as well as increased provisioning in the microfinance book resulting in elevated credit cost.

 

The bank's net interest income (NII) declined 18 per cent year-on-year (Y-o-Y) to ₹4400 crore, while net interest margin (NIM) contracted 14 basis points Q-o-Q to 3.32 per cent.

 

On the business front, IndusInd Bank reported a 2 per cent Q-o-Q and 9 per cent Y-o-Y reduction in loan book, mainly due to 21 per cent Y-o-Y/1 per cent Q-o-Q decline in corporate book and 35 per cent Y-o-Y/ 25 per cent Q-o-Q decline in MFI book (which accounts for 7 per cent of total loans).

 

"We maintain ‘Hold’rating on the stock due to a higher level of volatility in earnings resulting from asset quality issues and high credit costs. We would like to monitor execution under the new MD as sustained recovery in loan growth, coupled with declining levels of slippage and credit cost, will be critical to improve the return ratio which will be the key for re-rating of the stock," Antique Broking said.

 

It expects near-term return ratios to remain muted and expects the bank to cross 1-per cent return on assets (RoA) mark by FY28.

 

Those at HDFC Securities, meanwhile, maintained its ‘Reduce’ rating on the stock with a target price of ₹640 (26 per cent downside potential).

 

"IndusInd Bank is currently challenged with multiple handicaps around a sub-par deposit franchise, lack of credible accounting practices, and stress in its unsecured book. We cut our FY26 and FY27 earnings (profit) forecasts by 43 per cent and 17 per cent, respectively, to factor in accelerated provisioning, coupled with a single-digit loan CAGR, and muted return ratios over the medium-term," the brokerage said.

 

It expects IndusInd Bank to undergo a complete overhaul to regain stakeholder credibility, which, it believes, is likely to be a long grind.