dvader
TF Ace
Well, it's not at the scale of YesBank but yeah still scary. I have a considerable sum in IndusInd, but not in FD, I will move some out.
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IndusInd Bank shares fall 20% after Q2 profit drop, asset quality deterioration
- Thread starter SSV
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- indusind indusind bank
dvader
TF Ace
Well, business-standard has a good article. Basically, IndusInd bought some swaps to hedge against their forex deposits/debts and they didn't include losses in the Net Interest Income statement, while they added the treasury gains in P&L statement. Technically if you have investment X and you invest Y to hedge it, a loss in one is more or less cancelled by gain in another. IndusInd recognized the gains in one investment but didn't report losses in the hedge. Which is BAD. One good thing, customers' money was not involved or IndusInd wouldn't have reported it.
RBI banned internal hedging in 2024 (all the losses are prior to 2024), maybe they knew about this for some time and that's why they have been trying to force out the current CEO. CFO has already resigned. RBI might have orchestrated this whole internal audit to avoid multiple issues coming out at the same time. Microfinance stress in 2024, and the derivatives issues just before March 31st 2025.
Ignoring the CEO's competence/malice for a min. I don't understand why IndusInd's board is hell-bent on getting an extension for this CEO. He should have been gone by now.
As long as RBI is on top of it the bank should be alright. Also, financially this is not a problem at all, but it hits the bank's credibility.
In short, This is nothing like YesBank.
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be careful of catching a falling knife. The external audit might unearth more skeletons.
dvader
TF Ace
Yeah Hinduja has been trying to increase to increase their stake from 16% to 26%. They were blocked by RBI last time. All this seems like a setup for Hinduja to increase their stake in the bank while the stocks are low. Because just looking at the value the stock is cheap right now.
The only con right now is secrecy. I hate these internal dealings and IndusInd should be more transparent.
Absolutely, will tread carefully. 🙏
Circuit gets open for fno stocks
sunit123
TF Ace
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.
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
Not for FNO stocks, First 10% than 5% and so on, 15 Min halt/trading stop at every circuit. Can Go go on 40-50-60 either side in a day. Or a Roller Coaster day can move both side Means -30 % than can go +30 %
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Beyond
TF Ace
For personal gains over organisations losses....
paras.bhalodia
TF Buzz
Today on March 11, 2025, IndusInd stocks completely crashing, consistently hitting lower circuits. I have a fixed deposit, when should FD owners start worrying?
We planned a lifelong commitment of upto 10 L across 2 accounts to IndusInd as FD with the interest as a significant source of income for household expenses.
We as FD investors have zero knowledge on stock crashes. But as far as I know, the bank is doing terribly. The employees themselves eat tea biscuits everyday and I see only myself as a customer whenever I visit.
We planned a lifelong commitment of upto 10 L across 2 accounts to IndusInd as FD with the interest as a significant source of income for household expenses.
We as FD investors have zero knowledge on stock crashes. But as far as I know, the bank is doing terribly. The employees themselves eat tea biscuits everyday and I see only myself as a customer whenever I visit.
Beyond
TF Ace
Safe till 300
dvader
TF Ace
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.
Beyond
TF Ace
Instead of CEO they need a new CTO, who can find his hand behind his own back 😆
dvader
TF Ace
Well CFO has already resigned so we need the entire C-Suit at this point. IndusInd has a great pedigree, apart from RBI looking for an external CEO, IndusInd's board should start working on finding good leaders.
paras.bhalodia
TF Buzz
Me looking for job, they looking for strong leader, rab ne bana di jodi. 🥲
Danda maar maar ke vasooli karunga CC holders se.. loan valo andi mandi...
Baaki sabko fire karke fresh staff. Fresh loan book.. AC daal do.. staff cooler pe chal raha Inka..
paras.bhalodia
TF Buzz
Jokes aside, I feel they are a serious bank in the sector. I have no reasons to believe they are revdi giving loans without proper mortgage.
It's some orchestral drama by Hinduja Sir to reduce stocks to penny, rake up his own stake. The stock will FALL more. But a month later, trust me, it will be more of a Hinduja Pvt Property venture.
Has been for 30 years.. they themselves did not trust the bank so promoter only had 16% shares. Now.. since they know they are a big bank.. they want to stake up promoter share BUT at a tanked price.
its_karan
TF Legend
Have a read
premium.capitalmind.in
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
