IndusInd Bank Share Price : For the second day in a row today, the stock market has started with a decline. The Sensex fell 375 points to trade at 73,735 and Nifty slipped 130 points to trade at 22,329. Today, there is a huge fall in the shares of IndusInd Bank. At 11: 13 am, the stock was trading at Rs 704.20, down 21 per cent Today, its 52-week low has become Rs 695.25. At the same time, the share of IndusInd Bank was at a 52-week high of Rs 1576. The stock had closed at Rs 900.60 in Monday’s session.
IndusInd Bank Share Price Today
Why did Indusind Bank Share fall sharply?
The steep fall comes after the bank admitted to flaws in its derivatives portfolio. According to Moneycontrol, the profit is likely to be Rs 1500 crore. As the news broke, several brokerage firms and analysts downgraded the stock’s rating and target price, undermining investor confidence. IndusInd Bank has also appointed an external agency in its internal review, which is independently reviewing the matter. The bank has also informed that it is able to deal with the impact on net worth due to this. The bank will take its steps on the financial results only after the final report comes.
The RBI’s new rule, ‘Master Direction – Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions) 2023′, has come into effect from April 1, 2024, and follows the new guidelines on derivative portfolios issued by the RBI in September 2023. In this, the bank’s’ Other Assets and Other Liabilities’ accounts have been checked and mistakes have been found in the accounts.
Indusind Bank Share crash
The bank has also informed that some mistakes have been found in the derivatives portfolio after the implementation of RBI’s Master Direction 2023. The glitch came to light during an inspection of the lenders’ investment portfolios. These derivatives trades were made 5-7 years ago. According to Zee News, the bank’s net worth may see a decline of 2.35 per cent by December 2024. The company’s record high was Rs 1576.00.
Indusind Bank Share Brokerage reduced target
PL Capital has said that there can be a loss of about Rs 2100 crore in the bank’s P & L. Kotak Institutional Equities said it can regain its credibility. But it can take 2 to 3 weeks. MOFSL has revised its target price to Rs 925, while ICICI Securities has set a target of Rs 850. Kotak Institutional Equities has cut its target for the stock to Rs 850 from Rs 1400 earlier and downgraded its rating to ‘down’ from ‘buy’. PL Capital has a target of Rs 1,000 crore. Nuvama expects the stock to settle at Rs 750.
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