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

[EnthuCC]

We can not discuss details in public forum.

Why not? Even if it will be long to write it will be educational for all of us. It will open doors for the discussions.

I have a considerable sum in IndusInd, but not in FD, I will move some out.

In short, This is nothing like YesBank.

I was about to ask that. I have maintained 10L in IndusInd for Pioneer banking. Shall I move all funds already?

F&O stocks have NO upper or lower circuit unless SEBI comes to rescue like they put a circuit limit on Adani F&O stocks after hindenburg report.

Isn't 10% lower circuit for Nifty? 10%, 15%, and 20%. I remember it was 20% in Adani stock issue.

I asked Perplexity to confirm.

 

[sunit123]

Saving and Deposits are safe. Indusind has a strong sheet. You wont have to worry about these things as a deposit holder.

There are other issues however, lack of transparency, corporate governance issues. Lack of strong processes. They need a strong leader right now to lead them in right direction.

Unfortunately investors fail to acknowledge that if there is a major crash then there is some serious issue with bank.

Hypocrisy is that if stock price is rising then BANK is best but if it falling then also it is BEST

 

[sunit123]

Why not? Even if it will be long to write it will be educational for all of us. It will open doors for the discussions.



I was about to ask that. I have maintained 10L in IndusInd for Pioneer banking. Shall I move all funds already?

Isn't 10% lower circuit for Nifty? 10%, 15%, and 20%. I remember it was 20% in Adani stock issue.

I asked Perplexity to confirm.

View attachment 86429

No..Please read that SEBI can intervene to impose such limits else a stock can also fall 50% in a day....Sebi intervened in case of adani as i mentioned in my previous post but did not intervene in indusind...However, trading is halted for sometime at 10%, 20% etc levels.

 

[sunit123]

So you are saying SEBI after getting notification from indusind could have temporarily restricted stock trade but they chose to not do it thus loosing investors money severely in a day

They could have intervened like they did in adani crash

 

[sunit123]

Have a read

Why is IndusInd Bank under pressure - Capitalmind

IndusInd Bank’s stock is under pressure amid concerns over its derivative hedging strategy, which created an accounting mismatch between internal and external swaps. With a ₹1,500 Cr post-tax hit expected in Q4, the management insists it’s a one-time event, but investors remain cautious.

premium.capitalmind.in

Do not listen to all these youtubers and so called experts...Anyone including a nursery kid can do post-mortem....If they are true experts they could have warned in advance by deeply analyzing their balance sheets.....

Now everyone is pretending to be expert after investors lost heavily.

 

[hender]

Why not? Even if it will be long to write it will be educational for all of us. It will open doors for the discussions.



I was about to ask that. I have maintained 10L in IndusInd for Pioneer banking. Shall I move all funds already?

Isn't 10% lower circuit for Nifty? 10%, 15%, and 20%. I remember it was 20% in Adani stock issue.

I asked Perplexity to confirm.

View attachment 86429

No..Please read that SEBI can intervene to impose such limits else a stock can also fall 50% in a day....Sebi intervened in case of adani as i mentioned in my previous post but did not intervene in indusind...However, trading is halted for sometime at 10%, 20% etc levels.

For exchange it's 10, 15,20.
For stocks, no limit.
It's that mwpl or open limit exhausted fresh long/short can't be opened now.
For Better clarity , sit wth profitable trader in F&O, having many years experience of profit making.
Or ask your broker's surveillance team, risk management team, they will better help you in latest rules in force.

 

[thanix]

Not sure what's the higher FD rate Indusind is giving, but if it is just 0.1 or 0.2 %, it is better to move out. They have serious governance issues and can cook the books like this, more skeletons may Come out. Get out when you can.

 

[hender]

Not sure what's the higher FD rate Indusind is giving, but if it is just 0.1 or 0.2 %, it is better to move out. They have serious governance issues and can cook the books like this, more skeletons may Come out. Get out when you can.

+1, on interest rate difference.

Upto .5% difference would not matter much if the amount is not so huge.
Share Holder:
FD Holder:
Peace of mind, trust and comfort all things matters.

 

[Tarun239]

I know this is a very silly question, can indusind bank announce it has gone bankrupt in a day, or the fall would be gradual, giving some time to people to withdraw money from indusind bank. Can someone also provide more detail on how 5 lakh insurance by DIGC works? Would this insurance also work if more than one person under family account has more than 5 lakh deposits each? If someone has good deposits with indusind bank, should they be worried rite now or just wait and watch.

 

[dvader]

I know this is a very silly question, can indusind bank announce it has gone bankrupt in a day, or the fall would be gradual, giving some time to people to withdraw money from indusind bank. Can someone also provide more detail on how 5 lakh insurance by DIGC works? Would this insurance also work if more than one person under family account has more than 5 lakh deposits each? If someone has good deposits with indusind bank, should they be worried rite now or just wait and watch.

Each individual has 5L insurance. They can't go bankrupt in a day, but at absolute worst (that would mean other banks would also be in danger), Investors and Bondholders will be wiped out. Depositors didn't lose money with YesBank, and that was a bigger debacle. I have a considerable corpus in Indus, and I am not worried, at least not right now. They found the problem on their own, instead of RBI taking over the bank, so that's a good sign. And leaving everything aside, the bank's book is solid.

Their stock is cheap right now given their value, I see a green candle today with considerable volume. 70-90% of the time DIPs are falling knives, this however seems like a good opportunity.

People get worried about commercial banks this easily and don't bat an eye depositing life savings in a co-operative bank. All you have to do is "BE ALERT" read news related to IndusInd Bank twice a day and follow the money/stock. You will know what to do.

 

[sunit123]

I know this is a very silly question, can indusind bank announce it has gone bankrupt in a day, or the fall would be gradual, giving some time to people to withdraw money from indusind bank. Can someone also provide more detail on how 5 lakh insurance by DIGC works? Would this insurance also work if more than one person under family account has more than 5 lakh deposits each? If someone has good deposits with indusind bank, should they be worried rite now or just wait and watch.

1. Nothing is impossible in this world
2. You will not get insured money immediately...It takes years
3. Insurance is against each PAN
4. You should be worried as it is financial lapse...Banks work on basic principle that all depositors will not come one day to withdraw the money....If panic spreads then bank will collapse.

 

[Tarun239]

Each individual has 5L insurance. They can't go bankrupt in a day, but at absolute worst (that would mean other banks would also be in danger), Investors and Bondholders will be wiped out. Depositors didn't lose money with YesBank, and that was a bigger debacle. I have a considerable corpus in Indus, and I am not worried, at least not right now. They found the problem on their own, instead of RBI taking over the bank, so that's a good sign. And leaving everything aside, the bank's book is solid.

Their stock is cheap right now given their value, I see a green candle today with considerable volume. 70-90% of the time DIPs are falling knives, this however seems like a good opportunity.

People get worried about commercial banks this easily and don't bat an eye depositing life savings in a co-operative bank. All you have to do is "BE ALERT" read news related to IndusInd Bank twice a day and follow the money/stock. You will know what to do.

Thanks for the info

 

[Tarun239]

1. Nothing is impossible in this world
2. You will not get insured money immediately...It takes years
3. Insurance is against each PAN
4. You should be worried as it is financial lapse...Banks work on basic principle that all depositors will not come one day to withdraw the money....If panic spreads then bank will collapse.

Thanks for providing insight

 

[Tarun239]

I know this is a very silly question, can indusind bank announce it has gone bankrupt in a day, or the fall would be gradual, giving some time to people to withdraw money from indusind bank. Can someone also provide more detail on how 5 lakh insurance by DIGC works? Would this insurance also work if more than one person under family account has more than 5 lakh deposits each? If someone has good deposits with indusind bank, should they be worried rite now or just wait and watch.

@SSV ur thoughts on this plz

 

[paras.bhalodia]

Today the stock jumped again. I feel there is serious issue in the bank. The CEO is incompetent and/or malice. Board as well.

What kind of a sane commercial bank goes through such stock contrasts intraday???

1) I suggest stay away from buying. This stock can come down very fast and no one will know.
2) Huge insider trading is happening as far as I know against all SEBI rules. MF Portfolio managers are the main culprits.
3) The bank needs to urgently clarify as to where the depositor money is used? IS IT USED IN THE MARKET?? Like Harshad Mehta kinda Scam? Bank guarantees?? For foreign stock trading?

Domestic FD holders are putting the money to disburse loans, not to trade in stock market. Nowhere they are mentioning word NPA rise etc.. They are using hedging etc terminology of the stock markets. WTH?

I believe this stock to be really volatile and unless the external audit publishes proper report, nobody should buy more IndusInd. Plus can somebody say, WHEN SHOULD FD HOLDERS START TO PANIC. We are already worried. I believe my money was used to trade in foreign markets. And is RBI sleeping or what?

 

[paras.bhalodia]

Also in Yes Bank fiasco,

1) Mama, Chacha, Bhatija ko 5 min mei call pe loan mil raha tha.. chai biscuit kha rhe they wo chu* management.
2) Obviously NPA increased and they hid it.
3) When it came out, the stock wiped out, RBI intervened, fired the entire management, directed others to infuse more capital in bank.

In IndusInd fiasco,

1) It looks like they have not given loans, these motherfu* directly invested depositor money in stock markets.
2) Does RBI have the rules as to how depositor money can be spent? Or they can in all sense invest in stocks?
3) If it is true, I hope not. God save us Depositors as well, because as I can understand, my money is wiped out and I should prematurely withdraw my FDs through IndusNet WHILE I CAN before the external audit, because after it, the panic will be terrible. And RBI will place moratorium and such things. So my money would be stuck forever.

 

[sunit123]

Waiting for 2 new webs series SCAM 2024 and SCAM 2025 on Sony Liv

 

[paras.bhalodia]

MF*kers definitely invested in stock markets.

But whose money? The depositor money or the investor money or the profit money? Which money? Ya maybe little bit of all.

And they faced losses, obviously someday it was bound to happen. This all terminology bullshit I don't get it.

Seedhe seedhe bata na ma ke l* kaunsa Paisa kidhar daala kyunki nuksaan toh tune bata Diya, 2000 Cr ka...

Wo bhi chalaki se. Like the bank forgot to calculate "Hedging costs"..

It's like ohhh I purchased wholesale stocks at falana rate, but also hedged it for safety. And therefore finally during calculation, I thought I was in profits.. par ma Kasam mai wo hedging ka cost bhul gaya.. toh aisa hai.. iss quarter stock mai jo itne saalo se mai depositor/profit/investor ka paisa uda Raha tha naa.. iss saal mandi ki wajeh se katora Khali reh gaya.. Mera bhi portfolio red hogaya.

Therefore. The bank did not make enough profit from stocks this quarter. Sorry.

Bhs*ke par ye toh bata RBI ke naak ke niche se kaunsa Paisa kiss scam se kaunse dalal (Harshad Mehta 2.0) kiss type ke loophole ko exploit karke daala.. Because I was of the impression that FD money can NEVER be used to trade in stocks. Period.

And even if FD money was not used, if the bank goes bankrupt, how the hell does RBI plan on recovering the loan amts with interests from retail loaners. Everybody will be like kaunsa Paisa.. kya Paisa.. mere paas kuch nhi kisi ko dene ke liye.

 

[Tarun239]

I don't have vast knowledge of banking sector, but it seems only very very few banks are trustworthy, people may critcise sbi a lot, but probably it is the safest bet in india,in pvt sector may be hdfc, icici, rest all have question mark over them.

 

[sunit123]

Failure of Bank is basically a Failure of RBI...On lighter note, In India Nehru Ji is responsible for all the problems so Nehru Ji is responsible for indusind bank fiasco.