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

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JigmeKhesar said:
that is interesting. so what are the other issues if banking is not one of them for IndusInd Bank?
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They currently have these major issues
1. (Less) Transparency in non-regulated segements.
2. Incompetent C-Suite
3. Corporate governance issues
4. Procedure, Processes, Control and IT stuck in 2000s

IndusInd Board should fire it's CEO to send a message (Doesn't matter if he is good or bad) and start working on these issues. However, I don't want them to become IDFC/HDFC either. IndusInd Bank has a separate identity and they were the turtles (slow, a bit dumb but always crossing the line) of banking from 2009-2019 (they saw exponential growth in this period). I want their IT to improve just a little bit but still have manual ways go get anything done after approvals and paperwork . I want their CEO to change but not someone like Axis' CEO just someone honest and still rooted in old banking ways.
 
dvader said:
They currently have these major issues
1. (Less) Transparency in non-regulated segements.
2. Incompetent C-Suite
3. Corporate governance issues
4. Procedure, Processes, Control and IT stuck in 2000s

IndusInd Board should fire it's CEO to send a message (Doesn't matter if he is good or bad) and start working on these issues. However, I don't want them to become IDFC/HDFC either. IndusInd Bank has a separate identity and they were the turtles (slow, a bit dumb but always crossing the line) of banking from 2009-2019 (they saw exponential growth in this period). I want their IT to improve just a little bit but still have manual ways go get anything done after approvals and paperwork . I want their CEO to change but not someone like Axis' CEO just someone honest and still rooted in old banking ways.
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Your post raises strong concerns about IndusInd Bank, but I’d like to dig deeper into your perspective. Let’s unpack this:

1. CEO Removal as a “Message”: You suggest firing the CEO regardless of merit to signal change. But if the C-suite is truly incompetent, wouldn’t the board need specific justification (beyond symbolism) to avoid worsening governance issues? How does removing a CEO—without evaluating their actual performance—align with improving governance? Could this risk further instability?

2. Regulatory Role: You highlight transparency gaps in “non-regulated segments” and governance failures. Why do you think the RBI hasn’t intervened if these issues are systemic? Are there specific lapses you’re referencing (e.g., disclosures, capital adequacy), or is this more about the bank’s internal culture?

3. Unregulated Segments: What exactly are these segments? IndusInd operates largely as a regulated entity under RBI oversight. Are you suggesting they’re operating in unregulated areas?

4. C-Suite Competency: How did you assess the executives’ incompetence? Is this about strategic missteps, ethical concerns, or something else?

Your critique has valid undertones, but hyperbole like “stuck in the 2000s” or symbolic CEO firings risks oversimplifying complex issues. IndusInd’s challenges likely demand structural reforms—not just leadership theatrics. What’s your vision for practical steps the board could take beyond a CEO shakeup?

Looking forward to your thoughts!

PS: If you have insider insights or documents pointing to these issues, sharing them (anonymously?) could spark a more actionable discussion.

PPS: I’m still pondering what you mean by “don't want them to become IDFC/HDFC either.”
 
JigmeKhesar said:
Your post raises strong concerns about IndusInd Bank, but I’d like to dig deeper into your perspective. Let’s unpack this:

1. CEO Removal as a “Message”: You suggest firing the CEO regardless of merit to signal change. But if the C-suite is truly incompetent, wouldn’t the board need specific justification (beyond symbolism) to avoid worsening governance issues? How does removing a CEO—without evaluating their actual performance—align with improving governance? Could this risk further instability?

2. Regulatory Role: You highlight transparency gaps in “non-regulated segments” and governance failures. Why do you think the RBI hasn’t intervened if these issues are systemic? Are there specific lapses you’re referencing (e.g., disclosures, capital adequacy), or is this more about the bank’s internal culture?

3. Unregulated Segments: What exactly are these segments? IndusInd operates largely as a regulated entity under RBI oversight. Are you suggesting they’re operating in unregulated areas?

4. C-Suite Competency: How did you assess the executives’ incompetence? Is this about strategic missteps, ethical concerns, or something else?

Your critique has valid undertones, but hyperbole like “stuck in the 2000s” or symbolic CEO firings risks oversimplifying complex issues. IndusInd’s challenges likely demand structural reforms—not just leadership theatrics. What’s your vision for practical steps the board could take beyond a CEO shakeup?

Looking forward to your thoughts!

PS: If you have insider insights or documents pointing to these issues, sharing them (anonymously?) could spark a more actionable discussion.

PPS: I’m still pondering what you mean by “don't want them to become IDFC/HDFC either.”
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I will keep it short,
1. All this happened on the CEO's watch. If he knew what was going on, he would be a bad guy and should be out; if he didn't, he would be incompetent and should be out anyway. RBI also wants this CEO out and has been trying to get rid of him since his first extension. IndusInd's Boards is keeping him because RBI has been trying to get an external CEO and they are, for some reason, uncomfortable with it.
2. IndusInd is not just a bank. They are part of IndusInd International Holding Ltd, they recently completed the acquisition of Reliance Capital. IndusInd works in international investment, they invest money (this is independent of any client or retail deposit). This is the unregulated segment I am talking about. As soon as RBI bought new regulations, IndusInd complied and would move such investments to other subsidiaries. These issues are not systemic, but RBI being an excellent regulator is avoiding even the slightest of irregularities with commercial banks. Note: All banks make such investments, IndusInd happens to make an accounting error and ruined it for everyone else.
3. Explained in point 2
4. The CFO resigned last year, and RBI is trying to get rid of its CEO. While all this is happening, we get the internal audit report. That's gross and borderline criminal incompetence. I don't assess Competency, as long as the C-Suit manages to stay out of these controversies that's good enough.

IDFC: They went with tech first approach. Their process are so strict even the branch personnel have very little to no leeway in banking processes. Now for some this is good but it's not my taste.

HDFC: They have become too big, basically a sarkari bank.

IndusInd, RBL, YesBank etc are your middle-of-the-road banks. IndusInd in particular has been really good if you can go around it's quirks.
 
dvader said:
I will keep it short,
1. All this happened on the CEO's watch. If he knew what was going on, he would be a bad guy and should be out; if he didn't, he would be incompetent and should be out anyway. RBI also wants this CEO out and has been trying to get rid of him since his first extension. IndusInd's Boards is keeping him because RBI has been trying to get an external CEO and they are, for some reason, uncomfortable with it.
2. IndusInd is not just a bank. They are part of IndusInd International Holding Ltd, they recently completed the acquisition of Reliance Capital. IndusInd works in international investment, they invest money (this is independent of any client or retail deposit). This is the unregulated segment I am talking about. As soon as RBI bought new regulations, IndusInd complied and would move such investments to other subsidiaries. These issues are not systemic, but RBI being an excellent regulator is avoiding even the slightest of irregularities with commercial banks. Note: All banks make such investments, IndusInd happens to make an accounting error and ruined it for everyone else.
3. Explained in point 2
4. The CFO resigned last year, and RBI is trying to get rid of its CEO. While all this is happening, we get the internal audit report. That's gross and borderline criminal incompetence. I don't assess Competency, as long as the C-Suit manages to stay out of these controversies that's good enough.

IDFC: They went with tech first approach. Their process are so strict even the branch personnel have very little to no leeway in banking processes. Now for some this is good but it's not my taste.

HDFC: They have become too big, basically a sarkari bank.

IndusInd, RBL, YesBank etc are your middle-of-the-road banks. IndusInd in particular has been really good if you can go around it's quirks.
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Indusind bank should hire you as a customer relationship manager after seeing all your write-up in Techfino
 
KGSIPO said:
Indusind bank should hire you as a customer relationship manager after seeing all your write-up in Techfino
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Haha, this is more of a write up on RBI. RBI should hire me 😂. Jokes apart, I suported my colleagues during yesbank fiasco too. During that time, I went in so far as to get a CC with them, got Yes First Ex (Reserv now) LTF, got a zero balance account, a yes First account. Whenever a comercial bank has troubles, it's the best time to get their products.
 
EnthuCC said:
Are you a banker?
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Nope, with support i meant, I knew RBI wont and cant let yesbank fail. Commercial banks CANNOT fail. I took (3 months) post dated cheques with a few thousand extra as a goodwill gesture on their end (upto them) and gave them cash. Asked them to register positive pay when time came and cashed it. There was one issue with signature mismatch but at that time, he just paid me back online.
 
dvader said:
Nope, with support i meant, I knew RBI wont and cant let yesbank fail. Commercial banks CANNOT fail. I took (3 months) post dated cheques with a few thousand extra as a goodwill gesture on their end (upto them) and gave them cash. Asked them to register positive pay when time came and cashed it. There was one issue with signature mismatch but at that time, he just paid me back online.
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What is ur current assessment about indusind bank? I am bit scared right now, their poor tech, poor app, poor customer support is making matters worse, would like to know ur honest opinion on these matters as well.
 
Tarun239 said:
What is ur current assessment about indusind bank? I am bit scared right now, their poor tech, poor app, poor customer support is making matters worse, would like to know ur honest opinion on these matters as well.
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Instead of poor, I would say average compared to the IT of other top banks. I mean it's better than most PSU, SFBs, and Private banks but it falls way short when compared to banks like HDFC, ICICI, IDFC, etc, and evidently so. And I don't mind that as long as the products are solid which they are. I have multiple IndusInd accounts (family) to distribute the corpus and avoid any risk. All you need to do is reduce your exposure that's all.

FAQs

1. Will IndusInd fail? NO NOT A CHANCE.
2. What will happen if it fails hypothetically? Your money won't be safe in other banks either at that point.
3. But what about the YesBank fiasco? You are proving my point, not a single person lost a single Rupee of deposit money, and it was a worse disaster.
4. What should I do? Just reduce your a/c bal exposure and keep around 4L balance in each account not more than that.
 
dvader said:
Instead of poor, I would say average compared to the IT of other top banks. I mean it's better than most PSU, SFBs, and Private banks but it falls way short when compared to banks like HDFC, ICICI, IDFC, etc, and evidently so. And I don't mind that as long as the products are solid which they are. I have multiple IndusInd accounts (family) to distribute the corpus and avoid any risk. All you need to do is reduce your exposure that's all.

FAQs

1. Will IndusInd fail? NO NOT A CHANCE.
2. What will happen if it fails hypothetically? Your money won't be safe in other banks either at that point.
3. But what about the YesBank fiasco? You are proving my point, not a single person lost a single Rupee of deposit money, and it was a worse disaster.
4. What should I do? Just reduce your a/c bal exposure and keep around 4L balance in each account not more than that.
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Our brother hard core supporter dvader also requesting to limit your exposure not more than 4 lakhs in Indusind bank but the people asking questions the safety of Indusind bank have much more exposure ( May be more than 50 lakhs)
 
KGSIPO said:
Our brother hard core supporter dvader also requesting to limit your exposure not more than 4 lakhs in Indusind bank but the people asking questions the safety of Indusind bank have much more exposure ( May be more than 50 lakhs)
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4L per account/PAN, I have 7-8 account in family. And no matter what happens Don't keep 50L in one account for any bank even if it's a Swiss bank (Credit Suisse failed last year the biggest investment bank in the world, not that anyone lost their deposit but all investments were wiped out). 20-25L in 4-5 account is the sweet spot at this point.

And I think you don't understand my point so PLEASE READ CAREFULLY. I am not a hardcore Indusind bank supporter, I am a hard core Central Bank supporter (not just RBI, BOJ, USFed, ECB, RBA, PBC, SNB, BoE etc to name a few). I would say this for all Commercial and PSU banks (I might complaint about a bank's IT, customer support or service but it has nothing to do with deposited money). So I would support any Commercial/PSU bank in this situation.
 
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dvader said:
Instead of poor, I would say average compared to the IT of other top banks. I mean it's better than most PSU, SFBs, and Private banks but it falls way short when compared to banks like HDFC, ICICI, IDFC, etc, and evidently so. And I don't mind that as long as the products are solid which they are. I have multiple IndusInd accounts (family) to distribute the corpus and avoid any risk. All you need to do is reduce your exposure that's all.

FAQs

1. Will IndusInd fail? NO NOT A CHANCE.
2. What will happen if it fails hypothetically? Your money won't be safe in other banks either at that point.
3. But what about the YesBank fiasco? You are proving my point, not a single person lost a single Rupee of deposit money, and it was a worse disaster.
4. What should I do? Just reduce your a/c bal exposure and keep around 4L balance in each account not more than that.
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I am thinking of seeing the IndusInd results of this quarter. After that I will visit my nearest branch and ask for a LTF Pioneer Metal with 30 lakh cheque. Let's see how it unfolds.
 
opbamldg said:
I am thinking of seeing the IndusInd results of this quarter. After that I will visit my nearest branch and ask for a LTF Pioneer Metal with 30 lakh cheque. Let's see how it unfolds.
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Sure, they will be pleased to 🎉🎉
Welcoming you on board 👑
 
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