IndusInd Bank Ltd
IndusInd Bank Ltd
Financial Services F&OIndusInd Bank Limited was incorporated in 1994 as a commercial bank under the Banking Regulation Act, 1949. The Bank is publicly held and provides a wide range of banking products and financial services to corporate and retail clients besides undertaking treasury operations. The Bank operates in India including at the International Financial Service Centres in India.[1]
IndusInd Bank trades at an elevated PE of 82.3x with severely declining profitability (TTM profit growth of -65%) and weak ROE of just 1% last year. With 42.8% promoter pledging, low promoter holding at 15.5%, and massive contingent liabilities of Rs.14,36,530 Cr, the risk-reward is unfavorable despite the low P/B of 1.12x.
Key Fundamentals
MidcapPrivate BankBanksTechnical Indicators
Key Insights
Strengths
1- Stock is trading at 1.10 times its book value
Weaknesses
8- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 9.79% over past five years.
- Promoter holding is low: 15.5%
- Company has a low return on equity of 6.61% over last 3 years.
- Contingent liabilities of Rs.14,36,530 Cr.
- Promoters have pledged 42.8% of their holding.
- Dividend payout has been low at 9.15% of profits over last 3 years
- Working capital days have increased from 197 days to 277 days
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoIndusInd Bank trades at an elevated PE of 82.3x with severely declining profitability (TTM profit growth of -65%) and weak ROE of just 1% last year. With 42.8% promoter pledging, low promoter holding at 15.5%, and massive contingent liabilities of Rs.14,36,530 Cr, the risk-reward is unfavorable despite the low P/B of 1.12x.
- Stock trades at just 1.12x book value, well below historical averages for private banks, offering potential deep-value entry
- 10-year compounded sales CAGR of 15% demonstrates long-term franchise strength and deposit/loan growth capability
- 10-year ROE average of 10% indicates the bank has historically generated reasonable returns on equity before recent stress
- Market cap of Rs.72,737 Cr for a large private bank suggests significant re-rating potential if asset quality stabilizes
- 25% of analysts (9 out of 36) still rate the stock a Buy, indicating some institutional confidence in a turnaround
- 5-year compounded sales growth of 10% shows the core lending franchise continues to scale despite profitability headwinds
- 3-year sales CAGR of 8% confirms revenue momentum has not collapsed even as profits contracted sharply
- TTM compounded profit growth of -65% signals a severe earnings collapse that may take multiple quarters to recover
- PE of 82.3x is extremely elevated for a bank, reflecting collapsed earnings rather than growth premium
- Promoter holding at just 15.5% with 42.8% of that pledged creates significant governance and forced-selling risk
- Contingent liabilities of Rs.14,36,530 Cr dwarf the market cap of Rs.72,737 Cr, posing material off-balance-sheet risk
- Last year ROE of just 1% is far below cost of equity, actively destroying shareholder value
- 3-year compounded profit CAGR of -51% shows this is not a one-off but a sustained earnings deterioration
- 36.11% of analysts (13 out of 36) rate the stock a Sell, the highest proportion among coverage, reflecting broad skepticism
- Working capital days increased from 197 to 277 days, indicating deteriorating asset-liability management efficiency
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Whistleblower alleges insider trading Jun 3
Complaint to PMO, RBI, SFIO alleges former zonal head Samir Agarwal made ~Rs 46 crore gains through Rs 815 crore in trades using confidential information; family-linked trades totalled Rs 816 crore with profits exceeding Rs 53 crore.
- Governance crisis and audit failures Jun 3
Statutory auditors issued adverse opinion on internal financial controls for FY2025; audit committee allegedly suppressed findings rather than reporting insider trading to SEBI; multiple audit layers failed to detect irregularities over 5-7 years.
- Rs 2,000 crore derivatives discrepancy Jun 3
Bank disclosed Rs 1,960 crore adverse accounting impact from incorrect derivative trade accounting; shares had earlier plummeted 27% on disclosure. SEBI barred former CEO Kathpalia and impounded Rs 19.78 crore.
- Microfinance loan misclassification Jun 3
Rs 1,800 crore of microfinance loans misclassified with under-provisioning of Rs 1,885 crore; gross NPA ratio rose to 3.13% from 1.92% YoY with microfinance segment at 7.05%.
- Stock drops on whistleblower news Jun 3
Shares fell 2.92% to Rs 885.90 after Business Standard reported fresh whistleblower allegations; exchanges sought clarification from the bank.
- Multi-agency regulatory scrutiny Jun 3
Coordinated investigations by RBI, SFIO, NFRA, and SEBI underway; potential penalties could exceed Rs 10 crore with possible business restrictions and management changes under Banking Regulation Act.
- Active institutional investor engagement Jun 8
Bank held investor meets at Morgan Stanley forum (Jun 2), Citi India Conference (Jun 4), UBS Asian Conference (May 26), and Mumbai analyst meet (Jun 8) with 17 major institutional participants including SBI Pension Funds and Tata AIA.
- Conservative lending approach adopted Jun 3
Bank reduced unsecured retail exposure by 10% and microfinance exposure by 21%; RBI affirmed the bank remains 'well-capitalised' prompting a 5% stock rebound.
- Credit card fee restructuring Jun 11
From June 15, 2026, IndusInd Bank revises credit card fees including 1% fuel fee above Rs 30,000 (down from Rs 50,000 threshold), new transport transaction fees above Rs 40,000, and increased late payment charges for Rs 501-10,000 slabs.
- 18,500 stock options granted Jun 24
Bank granted 18,500 stock options to 5 employees at Rs 905.45 per share, vesting over three years with five-year exercise window.
- Block trade of Rs 18.92 crore Jun 22
Approximately 201,118 shares traded at Rs 940.70 per share on NSE block deal window, totalling Rs 18.92 crore in institutional transaction.
- Trading window closed for Q1FY26 Jun 18
Trading window shut from July 1, 2026, until 48 hours after Q1FY26 results are declared per SEBI regulations.
- Board reconstitution underway Jun 8
Bank seeks shareholder approval for two new independent directors (Vikamsey and Garikipati) for four-year terms as Pradeep Udhas completes his tenure on June 8, 2026.
TL;DR: IndusInd Bank faces a severe governance crisis with whistleblower allegations of insider trading (Rs 46 crore gains), derivatives accounting discrepancies (Rs 1,960 crore impact), and microfinance loan misclassification (Rs 1,800 crore). On the positive side, RBI has affirmed the bank is well-capitalised, and management is actively engaging institutional investors while reducing risky exposures. The trend remains deteriorating as multi-agency investigations (RBI, SEBI, SFIO, NFRA) are ongoing with potential for significant penalties and management changes in coming quarters.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 10,021 | 10,730 | 11,248 | 11,572 | 12,199 | 12,547 | 12,686 | 12,801 | 10,634 | 12,264 | 11,609 | 11,373 | 11,005 |
| Expenses | 4,096 | 4,237 | 4,424 | 4,618 | 4,753 | 4,947 | 5,752 | 5,726 | 6,770 | 5,989 | 6,644 | 6,095 | 5,272 |
| Financing Profit | 574 | 630 | 653 | 677 | 623 | 460 | -405 | -498 | -3,722 | -1,350 | -2,235 | -1,533 | -901 |
| Fin. Margin % | 6% | 6% | 6% | 6% | 5% | 4% | -3% | -4% | -35% | -11% | -19% | -13% | -8% |
| Other Income | 2,154 | 2,210 | 2,282 | 2,396 | 2,508 | 2,442 | 2,185 | 2,355 | 709 | 2,157 | 1,651 | 1,707 | 1,714 |
| Interest | 5,351 | 5,863 | 6,171 | 6,277 | 6,822 | 7,139 | 7,339 | 7,573 | 7,586 | 7,624 | 7,199 | 6,811 | 6,634 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PBT | 2,727 | 2,840 | 2,935 | 3,073 | 3,131 | 2,902 | 1,780 | 1,857 | -3,013 | 807 | -584 | 174 | 813 |
| Tax % | 25% | 25% | 25% | 25% | 25% | 25% | 25% | 24% | -23% | 25% | -25% | 26% | 27% |
| Net Profit | 2,043 | 2,124 | 2,202 | 2,301 | 2,349 | 2,171 | 1,331 | 1,402 | -2,329 | 604 | -437 | 128 | 594 |
| EPS in Rs | 26.34 | 27.38 | 28.34 | 29.59 | 30.18 | 27.88 | 17.09 | 18 | -29.89 | 7.75 | -5.61 | 1.64 | 7.63 |
| Gross NPA % | 1.98% | 1.94% | 1.93% | 1.92% | 1.92% | 2.02% | 2.11% | 2.25% | 3.13% | 3.64% | 3.6% | 3.56% | 3.43% |
| Net NPA % | 0.59% | 0.58% | 0.57% | 0.57% | 0.57% | 0.6% | 0.64% | 0.68% | 0.95% | 1.12% | 1.04% | 1.04% | 1% |
Profit & Loss
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 11,872 | 14,406 | 17,281 | 22,261 | 28,783 | 29,000 | 30,822 | 36,368 | 45,748 | 48,668 | 46,251 |
| Expenses | 4,188 | 5,684 | 6,555 | 9,284 | 12,544 | 15,772 | 15,624 | 15,425 | 17,569 | 22,664 | 24,001 |
| Financing Profit | 329 | 379 | 942 | -438 | -485 | -2,244 | -623 | 2,167 | 3,046 | -3,632 | -6,019 |
| Fin. Margin % | 3% | 3% | 5% | -2% | -2% | -8% | -2% | 6% | 7% | -7% | -13% |
| Other Income | 3,297 | 4,171 | 4,750 | 5,647 | 6,953 | 6,501 | 7,408 | 8,173 | 9,396 | 7,690 | 7,229 |
| Interest | 7,355 | 8,343 | 9,783 | 13,415 | 16,724 | 15,472 | 15,822 | 18,776 | 25,132 | 29,636 | 28,268 |
| Depreciation | 157 | 191 | 212 | 229 | 291 | 328 | 352 | 407 | 463 | 532 | 0 |
| PBT | 3,469 | 4,360 | 5,481 | 4,980 | 6,177 | 3,929 | 6,433 | 9,932 | 11,979 | 3,526 | 1,210 |
| Tax % | 34% | 34% | 34% | 34% | 28% | 25% | 25% | 25% | 25% | 27% | 27% |
| Net Profit | 2,287 | 2,868 | 3,606 | 3,301 | 4,458 | 2,930 | 4,805 | 7,444 | 8,977 | 2,576 | 889 |
| EPS in Rs | 38.43 | 47.95 | 60.08 | 54.77 | 64.28 | 37.89 | 62.03 | 95.93 | 115 | 33.06 | 11.41 |
| Div. Payout % | 12% | 13% | 12% | 14% | 0% | 13% | 14% | 15% | 14% | 0% | 13% |
Balance Sheet
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 595 | 598 | 600 | 603 | 694 | 773 | 775 | 776 | 778 | 779 | 779 |
| Reserves | 17,102 | 20,049 | 23,243 | 26,085 | 34,054 | 42,727 | 47,252 | 54,229 | 62,429 | 64,057 | 64,809 |
| Borrowing | 24,996 | 21,454 | 38,289 | 47,321 | 60,754 | 51,323 | 47,323 | 49,011 | 47,611 | 53,704 | 42,789 |
| Deposits | 93,000 | 1,27,572 | 1,51,639 | 1,94,868 | 2,02,027 | 2,55,870 | 2,93,349 | 3,36,120 | 3,84,586 | 4,10,862 | 3,99,931 |
| Other Liabilities | 7,205 | 8,976 | 7,856 | 8,944 | 9,700 | 12,210 | 13,268 | 17,701 | 19,689 | 24,706 | 35,086 |
| Total Liabilities | 1,42,898 | 1,78,650 | 2,21,628 | 2,77,821 | 3,07,229 | 3,62,903 | 4,01,967 | 4,57,837 | 5,15,094 | 5,54,107 | 5,43,394 |
| Fixed Assets | 1,218 | 1,307 | 1,313 | 1,688 | 1,792 | 1,801 | 1,834 | 1,944 | 2,127 | 2,309 | 2,546 |
| CWIP | 37 | 28 | 25 | 22 | 79 | 75 | 95 | 135 | 197 | 188 | 0 |
| Investments | 34,056 | 36,704 | 50,078 | 59,268 | 59,938 | 69,653 | 70,930 | 83,076 | 1,06,486 | 1,14,457 | 1,25,007 |
| Other Assets | 1,07,587 | 1,40,611 | 1,70,211 | 2,16,843 | 2,45,419 | 2,91,374 | 3,29,109 | 3,72,682 | 4,06,283 | 4,37,154 | 4,15,841 |
| Total Assets | 1,42,898 | 1,78,650 | 2,21,628 | 2,77,821 | 3,07,229 | 3,62,903 | 4,01,967 | 4,57,837 | 5,15,094 | 5,54,107 | 5,43,394 |
Cash Flow
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -2,927 | 11,569 | -20,700 | -6,389 | -12,907 | 44,976 | 16,672 | -12,442 | -16,925 | 18,278 | 993 |
| Investing | -258 | -285 | -217 | -633 | 1,445 | -324 | -395 | -481 | -703 | -685 | -634 |
| Financing | 2,517 | -2,768 | 15,505 | 8,590 | 12,733 | -4,096 | -4,302 | 1,115 | -2,242 | 4,876 | -10,912 |
| Net Cash Flow | -667 | 8,516 | -5,412 | 1,568 | 1,271 | 40,556 | 11,975 | -11,808 | -19,869 | 22,468 | -10,553 |
| Free Cash Flow | -3,184 | 11,296 | -20,920 | -7,027 | -13,324 | 44,645 | 16,266 | -13,002 | -17,636 | 17,569 | 359 |
| CFO/OP | -21 | 154 | -175 | -31 | -66 | 346 | 124 | -54 | -49 | 82 | 5 |
Ratios
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 13% | 15% | 16% | 13% | 15% | 7% | 10% | 14% | 15% | 4% | 1% |
Documents
Frequently Asked Questions about IndusInd Bank Ltd
What does IndusInd Bank Ltd do?
Where is IndusInd Bank Ltd (INDUSINDBK) listed?
Which sector does IndusInd Bank Ltd belong to?
What is the market capitalisation of IndusInd Bank Ltd?
What is the PE ratio of IndusInd Bank Ltd?
What is the 52-week high and low of IndusInd Bank Ltd?
Does IndusInd Bank Ltd pay dividends?
What is the Return on Equity (ROE) of IndusInd Bank Ltd?
How can I research IndusInd Bank Ltd on Tapetide?
Company Information
IndusInd Bank Limited was incorporated in 1994 as a commercial bank under the Banking Regulation Act, 1949. The Bank is publicly held and provides a wide range of banking products and financial services to corporate and retail clients besides undertaking treasury operations. The Bank operates in India including at the International Financial Service Centres in India.[1]