IndusInd looses 27% in single day! Stocks Crashed

[paras.bhalodia]

Hello People.

I have watched the news, some reddit threads and from my general experience with this bank's employees and am facing a dilemma.

IndusInd's stock has been pretty volatile since COVID 2020. It's been 5 years and NOT a single linear patch. Sometimes it tanks to below 300, majorly remains at 750-900. And at times at 1200+

This kind of volatility in stocks for a commercial national bank is unjustified. What is causing this???

CFO resigned. Today's tank as far as I understand was because of some loss in derivatives business amounting to 2.5% of nett worth, i.e 1500 Cr Rs.

Should we, as deposit investors face red alarms?? Should we remove our FDs at the earliest even facing penalties? We have around 7L and the interest is a significant income for my household expenses. However, we can't risk our principles for some 0.5bhp interest. We pretty much get 8% for SCSS in Post Office.

Kind explanations for stock crash, and your overall remarks required.
Note - I know nothing about the share market, we don't invest. Layman.

 

[msd07]

Thread 'IndusInd Bank shares fall 20% after Q2 profit drop, asset quality deterioration'

Oct 25, 2024

IndusInd Bank shares sink 18% after Q2 profit slumps 39% YoY. Should you buy, sell or hold?

IndusInd Bank Share Price: Jefferies, Nomura, Investec, Nuvama, and IIFL have downgraded their ratings on IndusInd Bank due to weaker asset quality, lower Net Interest Margins, and softer loan growth. Target prices have been reduced significantly, reflecting concerns over profitability and...

economictimes.indiatimes.com

IndusInd Bank shares fall 20% after Q2 profit drop, asset quality deterioration - CNBC TV18

Out of the 50 analysts that have coverage on IndusInd Bank, 41 of them still have a "buy" rating on the stock, eight say "hold" and one has a "sell" rating on the lender.

www.cnbctv18.com

Shares of Private sector lender IndusInd Bank Ltd. fell as much as 20% on Friday, October 25, after the lender reported its quarterly results after market hours on Thursday.

IndusInd Bank reported a significant drop in its consolidated net profit for the second quarter...

• SSV
• indusind indusind bank
• Replies: 124
• Forum: Finance World News

• 
• 
• 

Duplicate thread

 

[Tonymathew]

Would not suggest to remove the entire 7 L.
Remember when yes bank fell, RBI rescued it by pushing big banks to get into yes bank for a 3y lock in period. I agree indusind was not as big as a YES, in its prime. However there is always interbank connections, just like shown in scam 1992 and lucky bhaskar, though very tightly regulated. Hence fall of a big bank, would trigger a turmoil in the entire banking industry. This was one of the reason why RBI tried to save YES.

As an FD depositor, I don't think you need to worry much. As RBI imposed freezing of banking operations won't occur overnight. But it is time you remain alert.

Better to be, my suggestion, is to reduce some of your FD, till a total of 5 L (not just principal, but also including the entire maturity interest that would be accrued at the time of maturity of that principal amount), by either choosing not to renew any soon to be matured FD, or closing the farthest to be matured at a penalty.

Better to move that remaining amount to any bank of your choice.

Even in the likely scenario of an extreme, your DICGC insurance, will come handy, even though it will be much delayed and head ache inducing, clearing only after liqudising all of the fallen banks asset.

My suggestion would be also to follow the proceedings of the recently fallen New India Cooperative bank, to get a real time knowledge of the proceedings as per DICGC insurance coverage.

Dont panic, the chance IndusInd is going to fall to Zero, is Zilch, for a depository. However, for an investor, there is a possibility it might (just might) go a Yes Bank way (though I do not think so, personally).

N.B.: People had FD in yes bank, at the time of its free fall. No one had any burn, as far as I know. People still do open FD in Yes bank.

N.B: The P&L of IndusInd for TTM is double that of Peak Yes Bank. So more reason for IndusInd to be saved, as a bank

 

[Beyond]

No worries till it fall to 300

 

[Tonymathew]

No worries till it fall to 300

What is there at 300?? 🤔🤔
300 was its covid low, when nifty was at 7k something...

 

[Beyond]

What is there at 300?? 🤔🤔
300 was its covid low, when nifty was at 7k something...

After that it will be free fall, investor will loose trust

 

[paras.bhalodia]

But what about depositors? I believe if every depositor in the country tries to withdraw FDs prematurely, the bank can't handle such stress. How will it fullfil premature FD withdrawal if everybody wants out in upcoming 4-5 days?

 

[Sagar56794]

But what about depositors? I believe if every depositor in the country tries to withdraw FDs prematurely, the bank can't handle such stress. How will it fullfil premature FD withdrawal if everybody wants out in upcoming 4-5 days?

That's what worries me. If that happens then it's a slippery slope. If most HNIs become cautious and withdraws their money that will definitely put a dent on their balance sheet.

 

[Heehaahee]

No worries till it fall to 300

Will it fall to 3 ?😋

 

[Beyond]

Will it fall to 3 ?😋

Unlikely 🙂 It's an old and functional bank

 

[Tonymathew]

But what about depositors? I believe if every depositor in the country tries to withdraw FDs prematurely, the bank can't handle such stress. How will it fullfil premature FD withdrawal if everybody wants out in upcoming 4-5 days?

As I mentioned, RBI and other banks will support.

 

[dvader]

Would not suggest to remove the entire 7 L.
Remember when yes bank fell, RBI rescued it by pushing big banks to get into yes bank for a 3y lock in period. I agree indusind is not as big as a YES. However there is always interbank connections, just like shown in scam 1992 and lucky bhaskar, though very tightly regulated. Hence fall of a big bank, would trigger a turmoil in the entire banking industry. This was one of the reason why RBI tried to save YES.

As an FD depositor, I don't think you need to worry much. As RBI imposed freezing of banking operations won't occur overnight. But it is time you remain alert.

Better to be, my suggestion, is to reduce some of your FD, till a total of 5 L (not just principal, but also including the entire maturity interest that would be accrued at the time of maturity of that principal amount), by either choosing not to renew any soon to be matured FD, or closing the farthest to be matured at a penalty.

Better to move that remaining amount to any bank of your choice.

Even in the likely scenario of an extreme, your DICGC insurance, will come handy, even though it will be much delayed and head ache inducing, clearing only after liqudising all of the fallen banks asset.

My suggestion would be also to follow the proceedings of the recently fallen New India Cooperative bank, to get a real time knowledge of the proceedings as per DICGC insurance coverage.

Dont panic, the chance IndusInd is going to fall to Zero, is Zilch, for a depository. However, for an investor, there is a possibility it might (just might) go a Yes Bank way (though I do not think so, personally).

N.B.: People had FD in yes bank, at the time of its free fall. No one had any burn, as far as I know. People still do open FD in Yes bank

You right in everything except IndusInd is bigger and older than YesBank (and by a margin). After everything that has happened with IndusInd, both have almost the same market cap as of today.

 

[Tonymathew]

You right in everything except IndusInd is bigger and older than YesBank (and by a margin). After everything that has happened with IndusInd, both have almost the same market cap as of today.

Let me rephrase myself. Yes bank, at the time of its fall was bigger than IndusInd. Attaching the P&L of the 2 cos from 2016-2019.

Now the TTM of IndusInd Bank is double that of Peak Yes Bank. So, rest be assured, banking industry will fight this over.

 

[paras.bhalodia]

Unlikely 🙂 It's an old and functional bank

It will fall to 450 least. Then stable for a month.. then will rise as promoters infuse

 

[Tonymathew]

It will fall to 450 least. Then stable for a month.. then will rise as promoters infuse

Even I predicted a similar course in Yes Bank in 2019-2020. Result - Lost 80% of principal invested in Yes.

So I would not associate myself with any prediction on IndusInd as a stock

 

[paras.bhalodia]

Even I predicted a similar course in Yes Bank in 2019-2020. Result - Lost 80% of principal invested in Yes.

So I would not associate myself with any prediction on IndusInd as a stock

Yes Bank and IndusInd are nowhere near comparison. I can predict is that IndusInd does not have the valuation to stay at 1000 Rs a share.

They will flat out at 500 a share and then a linear, stable growth like other banks.. nothing exponential.

But because of this fiasco, somebody would be able to get hold of shares at paani ke daam. Somebody always had control over news.. Who knows maybe they are creating a false loss hysteria so everybody dumps..

They collect at far lower prices. No harm to depositors money, no RBI issues.. they become sole owners.. profit remains stable... WHO LOST?? The investors 🤣🤣🤣 Win Win for others.

Question is if you hold, you remain at risk of unearthing more free fall. If you sell.. somebody will buy it after a certain crash at your loss.. Somebody is PURPOSEFULLY downgrading the asset to a break point.

IndusInd is more of a publically invested bank, hence the ups and downs. It needs a group to hold more share.

 

[Tonymathew]

Yes Bank and IndusInd are nowhere near comparison. I can predict is that IndusInd does not have the valuation to stay at 1000 Rs a share.

They will flat out at 500 a share and then a linear, stable growth like other banks.. nothing exponential.

But because of this fiasco, promoters would be able to get hold of shares at paani ke daam. They always had control over news.. Who knows maybe they are creating a false loss hysteria so everybody dumps..

They collect at far lower prices. No harm to depositors money, no RBI issues.. they become sole owners.. profit remains stable... WHO LOST?? The investors 🤣🤣🤣 Win Win for others. They can very well fire the staff as well and replace with better people for more stability and profit.

Question is if you hold, you remain at risk of unearthing more free fall. If you sell.. Hinduja's will buy it after a certain crash at your loss.. Shareholders are f**ked in all ways. They are PURPOSEFULLY downgrading their own asset to a break point.

Only save is, WHO Else has equivalent or more holdings than Hinduja's? LIC? They sleep through earthquakes. They won't do anything about safeguarding investors. They ought to fire the entire management and replace with transparent people. But the board won't do sh*t. Instead they want 3 more years with CEO. 🤣🤣

I just posted to reassure you.
You may do whatever you want to.
I have nothing to gain or lose boss.
I also suggest you to buy indusind bank at 500.
Even Mr. Hinduja himself would be surprised by your conviction. (My opinion doesn't matter)
Good luck to you

 

[paras.bhalodia]

I just posted to reassure you.
You may do whatever you want to.
I have nothing to gain or lose boss.
I also suggest you to buy indusind bank at 500.
Even Mr. Hinduja himself would be surprised by your conviction. (My opinion doesn't matter)
Good luck to you

I would buy it if it starts tanking more. Probably at 400.
PayTM tanked at 340, rose to 1000 in a year with a ban on PPBL still imposed.

 

[Tonymathew]

I would buy it if it starts tanking more. Probably at 400.
PayTM tanked at 340, rose to 1000 in a year with a ban on PPBL still imposed.

I am really confused man... The post started with your concern over FD, even thinking of Post office FD.

Now it is upto investing in IndusInd Bank.

I am calling it a day man.

Digest hi nahi ho raha hai kya chal raha hai mera India mein.. 🫡

 

[paras.bhalodia]

Chill Bhai. Mai FD investor hi hun. Mujhe red flags dikhe toh mai yahan Aya for others opinion.

Now I feel, I should open up Demat and buy IndusInd if it tanks below 400. Profit hi profit. 🤣 FD se byaj lunga aur stocks se return. Unless ofcrse it after all becomes Yes Bank. Uss case mei my prayers to retail investors.. baaki meri FD toh safe hi hai.. insured fully by DICGC with 2 accounts. Bss bank duba toh Paisa aane mei time lagega thoda..