IndusInd Bank hits over 2-yr low on worries over exposure to stressed firms

Analysts at Reliance Securities believe the bank's high exposure to stressed sectors and management transition could continue to limit any meaningful upside in the stock price in near-to-medium term.

Shares of IndusInd Bank were trading lower for the fourth straight day, hitting an over two-year low of Rs 1,220, down 6 per cent on the BSE on Thursday on concerns over exposure to stressed sectors. The stock of private sector lender was trading at its lowest level since January 23, 2017.

In the past four trading days, the stock has tanked 21 per cent, despite bank’s clarification that its exposure to housing finance company (HFC) is fully/strongly collateralised with no overdues. In comparison, the benchmark S&P BSE Sensex was down 2.3 per cent during the period.

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