IndusInd Bank started Monday on a strong note, up nearly 5% in early trade after the Reserve Bank of India issued a statement on March 15 reassuring depositors. According to RBI, and as reported by FinancialExpress.com, “there is no need for depositors to react to the speculative reports at this juncture. The bank is well-capitalised and the financial position of the bank remains satisfactory.”
RBI on IndusInd Bank
The IndusInd Bank stock has responded positively to the statement and is seeing significant upmove after the recent correction in the past week. According to RBI, “the bank has already engaged an external audit team to comprehensively review their current systems.” RBI Has directed the Bank’s promoters and the management team to ensure that all ‘remedial action’ is completed by the end of Q4FY25. They have also asked the Bank to make “required disclosures to all stakeholders.”
CLSA on IndusInd Bank
While most brokerages have a Neutral/Reduce rating on the stock, CLSA has come up with a positive report on the stock. They see potential for 30% upside in the stock price going forward. As reported by FinancialExpress.com, CLSA has put an Outperform rating on the stock with a price target of Rs 900 per share. According to the international brokerage, while the stock may see some more pain in near-term on account of investor concerns, ‘the bank delivering inline numbers in the subsequent quarters will help allay fears to a large extent.”
What are the positives for IndusInd Bank currently?
According to CLSA, ‘recovery in the microfinance business’ is seen as a key positive for the IndusInd Bank share price at the moment. That apart rate cuts and the RBI’s liquidity boost in the banking system are some of the other key factors that the street is watching out for.
IndusInd Bank’s capital adequacy is comfortable at the moment, as confirmed by the promoters last week. Its Capital Adequacy Ratio is at 16.46%. The Bank has 70.2% Provision Coverage Ratio as of December 2024. Its Liquidity Coverage Ratio (LCR) stands at 113% as of early March. This exceeds the regulatory requirement of 100%.
IndusInd Bank Share price Vs Nifty
The IndusInd Bank share price is up 4.54% intra-day on March 17 at 9:45 am. This is particularly striking after the share price corrected over 13% in past 5 sessions. Its now down over 33% in 1 month and the stock has corrected over 27% in 2025 so far. We can gauge the extent of the damage when compared to the Benchmark Nifty and the Nifty Bank Index. Over the last 5 das, the Nifty is up nearly 1% and in 2025, the Nifty’s losses are about 5% so far. The 1-month losses for the Nifty is less than 2%. The Nifty Bank Index is up over 1% in last 5 days. This is almost as much as the Nifty Bank Index declined in last 1 month. for 2025, the Nifty Bank Index is down 5%, similar to the Nifty.