IndusInd Bank Share Price Spikes 5% After RBI’s Assurance; Stocks Rebound From 37% Drop; Buy Now?

IndusInd Bank share price surged almost 5% intraday after the Reserve Bank of India (RBI) issued a statement on March 15th affirming that the bank remains well-capitalized and its financial position is stable. The RBI's announcement helped boost investor confidence after the recent crash in the IndusInd stock price. IndusInd Bank shares touched an intraday high of Rs.709, recovering from a sharp decline over the past few weeks.

IndusInd Bank Share Price Today

IndusInd Bank shares surged today, reaching an intraday high of Rs.709, marking a 5% jump from the previous closing price. However, the stock is currently trading at Rs. 681.55 apiece, up 1.37% at the time of writing.

Over the past 20 days, IndusInd Bank's share price has witnessed a significant decline, primarily due to concerns surrounding an estimated Rs. 2,100 crore accounting discrepancy. However, after the Reserve Bank of India (RBI) issued a reassuring statement confirming the bank's strong financial position and capital adequacy, the stock showed signs of recovery.

Why Did IndusInd Bank Share Price Rise?

On March 15, the RBI issued a statement addressing investor concerns about IndusInd Bank's financial stability. The central bank clarified that despite the recent accounting discrepancy estimated at Rs.2,100 crore, the bank's overall financial health remains strong. This reassurance fueled buying interest, pushing IndusInd Bank stock price up.

Recent IndusInd Bank Crisis Explained

As per reports, an internal review found that IndusInd Bank had significantly underestimated its hedging costs linked to past forex transactions. This miscalculation is expected to impact the bank's net worth by Rs. 1,600-2,000 crore, which is equivalent to 2.35% of its net worth as of December 2024 as per ET.

The disclosure led to a significant correction in the bank's share price, with the stock plunging 37% over the past 20 trading sessions. Following this, the RBI stepped in, directing the bank's board to complete remedial actions within March.
Despite these concerns, the RBI's assurance helped restore investor confidence, leading to a strong rebound in IndusInd Bank's stock.

Should You Consider Buying IndusInd Bank Shares Now?

With the RBI's reassuring statement and a 5% intraday rally, investors are now debating whether IndusInd Bank presents a buying opportunity. However, leading brokerage firms have issued mixed opinions on the stock.
Mirae Asset downgraded IndusInd Bank from 'Buy' to 'Hold' with a revised price target of ₹750, citing multiple concerns. The firm, in its report, highlighted the CFO's resignation, the RBI granting a shorter tenure extension for the CEO, and potential derivative portfolio losses as key reasons for the downgrade.

Kotak Securities also downgraded IndusInd Bank to 'Reduce' from 'Buy,' lowering its fair value estimate from ₹1,400 to ₹850. The firm slashed its FY25 earnings forecast by 25%, citing recent developments. Kotak's report noted that while its investment thesis was previously based on improving asset quality, CEO stability, and financial performance, the latest uncertainties could weigh on the stock's near-term movement.

Analysts suggest waiting for a better entry price before taking a fresh position in IndusInd Bank, as volatility is expected in the short term.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.