IndusInd Bank share price today: IndusInd Bank shares declined by 20% on Tuesday, reaching a new 52-week-level of Rs 720.50. Many brokerage has reduced its rating and price target after the bank’s discovery of accounting irregularities in the bank’s forex derivatives portfolio. The bank revealed a possible post-tax effect of Rs 15.8 billion rupees, which is 2.35% of its net assets. This has expressed concern about corporate governance and future earnings.
The sharp decline in the share price by the bank’s disclosures about the assessment discrepancies in the internal forex derivative transactions over a period of 5-7 years. According to the ET report, the financial impact will be reflected in the fourth quarter of the financial year 2025.
The revelation coincides with the existing investor concerns after the expansion of Sumant Kathpal, CEO of Limited IndusInd Bank, Reserve Bank of India (RBI), despite the request of the board for a three -year tenure.
Also read Elon Musk, the world’s richest person, loses $ 120 billion! Why is Tesla’s CEO’s net worth taking a hit
What are the brokerage saying about IndusInd Bank here:
Motelle Oswal:
In light of recent events, Motilal Oswal has modified the target price to Rs 925 to ‘neutral’ its stance on IndusInd Bank. The firm admits that accounting irregularities affect short -term results, the bank’s future leading plan and the solution of governance issues may improve.
“Recent accounting discrepancies related to derivative transactions have reduced more emotions and are likely to run damage in 4QFY25 as the bank absorbs the impact through its P&L. We hope that the stock will react negatively to this development. Said said that.
Nuvama:
After several adverse developments including CFO’s departure, Limited CEO Tenure Extension and Forex derived Markdown, Nuwama has reduced its ratings to reduce ‘lower’ from ‘hold’ for IndusInd Bank. The target price has been reduced to Rs 750 with the expectation of continuous pressure on earnings.
Also read RIL shares were immersed 25% from peak! 5.4 lakh crore rupees were eliminated – What is Outlook on Reliance Industries Stock?
Emkay global:
Emkay Global downed to ‘buy’ Indusind Bank and dropped its target value to 22%, cited the uncertainty around the final external audit report due to foreign exchange derived loss and Q4Fy25.
What is an investment strategy for IndusInd Bank?
Given a sufficient decline of 47% compared to the previous year and an additional 20% decrease on Tuesday, some brokerage firms estimate limited potential benefits from current assessment, while concerns about reliableness and uncertain benefits face significant challenges.
Financial experts emphasize that the improvement in share performance would be accidental on three important factors: independent audit assessment, leadership transition system and the result of the ability of the institution to result in the ability of their stakeholders to display strong corporate administration practices.
Also read Donald Trump’s tariff: India can be among us at the least weak Asian economies in the trade war – but there is a grip!
I am a passionate digital marketer, content writer, and blogger. With years of experience in crafting compelling content and driving digital strategies. I’m always exploring new trends, optimizing strategies, and creating content that resonates with audiences. When I’m not working, you’ll find me diving into the latest digital marketing insights or experimenting with new blogging ideas.