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The IndusInd Bank share price today, March 12, 2025, has indicated a recovery. As of 11.39 am, the shares are trading at ₹675.95, up by 3.05% from the last close of ₹655.95. This follows a sharp fall, with the stock having touched a 52-week low of ₹606.00. The fall was due to governance issues and financial irregularities. The latest price gain renewed investor sentiment.
Let’s explore the IndusInd Bank stock performance and current movements further to understand what to expect in the future.
The largest driver of IndusInd Bank's share price was the recent revelation of discrepancies in its derivatives book. The bank estimated a post-tax impact of ₹1,580 crore due to valuation mismatches in past transactions. This disclosure caused a massive sell-off, resulting in a 27% drop in the stock on March 11, 2025. The bank has since hired an external agency to authenticate its internal reports to rebuild investor confidence.
The Reserve Bank of India (RBI) sanctioned a short one-year extension for CEO Sumant Kathpalia, as opposed to the recommended three-year period. This move invited apprehensions relating to leadership stability, highlighting governance issues in the bank’s operations. The move resulted in investment fears due to leadership uncertainty.
Another setback occurred when IndusInd Bank's Chief Financial Officer (CFO) quit ahead of the Q3 earnings announcement. The resignation at this critical juncture raised eyebrows over the bank's financial health and transparency, contributing to increased volatility in its share price.
The string of bad news resulted in several brokerages downgrading the IndusInd Bank stock:
Emkay Global downgraded the stock from "Buy" to "Add," lowering the target price to ₹875, on account of uncertainty regarding the final audit report.
Nuvama put out a "Reduce" rating, bringing down the target price to ₹750, based on concerns regarding the bank's credibility and earnings visibility.
However, the recent assurances by the management regarding profitability in Q4 FY25 stabilized investor sentiment.
As of 11.49 am on March 12, 2025, the IndusInd Bank share price recovery shows a 0.24% gain to Rs 678.60:
Market Cap: The steep drop in the stock left IndusInd Bank's market cap trailing behind that of YES Bank on March 11. But a 15% jump from the 52-week low saw it reclaim its market cap, which is now ₹53,548 crore.
Trading Volume: The stock registered high trading on March 12, with 75,493,591 shares exchanging hands. Thus, indicating intense market activity.
Price-to-Book Ratio: Currently at 0.81, which is below the industry average, indicating a possible undervaluation of the stock.
Despite governance problems and financial doubts, IndusInd Bank’s CEO and management is hopeful about profitability. CEO Sumant Kathpalia said that the bank hopes to cover derivative-related losses in the current quarter. Also, assurances by promoter Ashok Hinduja regarding liquidity support have partially restored investor optimism.
However, the bank’s stock remains volatile, with analysts closely watching governance reforms, financial disclosures, and RBI’s stance on leadership transitions. Investors should remain cautious and track upcoming regulatory decisions and audit findings before making long-term investment decisions.
