IndusInd Bank stock tumbles 8%, m-cap falls below Rs 50,000 crore intraday

IndusInd Bank share: IndusInd Bank stock, however, recovered the losses, rising 13 per cent from the day's low, on bargain hunting at lower levels

IndusInd Bank share news: A day after clocking its worst single-day fall since listing, IndusInd Bank share price was volatile in trade on Wednesday, March 12, 2025.

 

IndusInd Bank stock dropped 7.7 per cent on the BSE to an intraday low of Rs 605.4 per share, before trimming losses to turn positive. At 9:45 AM, IndusInd Bank share price was ruling 5 per cent higher at Rs 689 per share as against a 0.08-per cent rise in the benchmark Sensex index.

 

The market capitalisation of IndusInd Bank broke below the Rs 50,000-crore mark, hitting a low of Rs 48,609 crore intraday, only to recover to Rs 53,431 crore levels at the time of writing this report. 

 

Notably, on Tuesday, IndusInd Bank's stock tanked 27 per cent on the BSE, hitting its lowest level in over 50 months, after the bank said accounting discrepancies in its forex derivatives portfolio may drag its net worth by 2.35 per cent or Rs 1,580 crore in the March quarter of the current financial year (Q4FY25).

 

Following this, IndusInd stock was slapped with a string of downgrades by brokerages, citing "lack of credibility" in the franchise. READ MORE

 

"We downgrade IndusInd Bank to 'Hold' from 'Buy' as we cut multiple to 1.0x from 1.4x driven by uncertainties relating to earnings quality and future leadership. The one-time impact of 2.35 per cent of the bank's net worth would hit overall FY25 earnings by 25 per cent. CET-1 for December, 2024, would decline by 37bps to 14.8 per cent. Our adjusted book value for FY25/26/27E has been revised downwards by 2.3-2.7 per cent," said analysts at Prabhudas Lilladher. The brokerage cut the target price to Rs 901 from Rs 1,000.  ALSO READ: Analysts cautiously optimistic on Tata Motors amid JLR vol concerns in FY26

 

Meanwhile, analysts further note that IndusInd Bank has been faces challenges for the past one year where outcomes have been less than desired and marred by event risks. On the bourses, too, the stock price of IndusInd Bank has seen more than 30 per cent correction in the past six months.

 

"We have yet to prune our earnings estimates, but this event does create challenges around potential downside revision. Given the uncertainty, we downgrade IndusInd Bank to 'Sell' from 'Accumulate' with a lower target price of Rs 830 from Rs 1,020 based on 0.8x (from 1.0x) FY27E P/BV," said those at Elara Capital.

 

On their part, the management and the promoters have shown confidence in IndusInd Bank's ability to ride through the crisis.

 

In interviews to TV channels, Ashok Hinduja, chairman, IndusInd International Holdings (IIHL), said that he trusted and was confident in the board and management of IndusInd Bank. READ HERE

 

"The financials are very strong. The operating profit for nine months is over ₹11,000 crore. The hit of ₹1,500-₹1,600 crore is not much. They will be able to take this hit," Hinduja said, advising shareholders not to panic.

 

Nonetheless, the stock seems to have shaken investor confidence as it continued its downward spiral on Wednesday. With today's decline, IndusInd Bank stock is down 61.6 per cent from its 52-week high level of Rs 1,576 per share, which it touched on April 8, 2024.