Is the sell-off in IndusInd Bank stock a buying opportunity?

While most analysts remain positive, institutional attitude will be crucial

The complaint by a whistle-blower alleging irregularity in IndusInd Bank’s MFI subsidiary, BFIL (Bharat Financial Inclusion), took the market by surprise. The stock dropped by nearly 11 per cent as the bank’s management addressed allegations in a concall, dismissing them as baseless. While IndusInd Bank denied the allegations that it was evergreening loans from BFIL, it did acknowledge that a “technical glitch” had led to over 84,000 MFI loans being sanctioned without customer consent in May 2021.

It said that over 26,000 of these loans were still active with an exposure of about Rs 34 crore, which is about 0.1