IndusInd Bank: Kathpalia's maiden attempt to quell doubts sparks concerns

As the new management looks to focus on balance sheet, growth may take a backseat

Normally, when a management addresses its investors, it is aimed at soothing their concerns. The stock price would rebound thereon. In IndusInd Bank’s case, the outcome of Sumanth Kathpalia’s (the bank’s newly elevated MD & CEO) first analyst call had a different effect.

On a day when the stock market bounced back strongly, with the Sensex rising over 3.6 per cent, IndusInd Bank's stock plunged 20 per cent in intraday trades before closing down 14.7 per cent. Divergent statements made by the bank in less than a month on key parameters — such as deposits, stressed exposure, and asset quality —