At a Glance
IndusInd Bank, India’s 7th largest private bank, has all the drama of a financial soap opera: derivatives discrepancies worth ₹1,959 Cr, CEO and Deputy CEO resignations, and rating downgrades. Yet, it still trades at a P/E of 52—as if investors are betting on a Bollywood-style comeback. With ROE at a measly 4.1%, book value at ₹826 (CMP at discount), and a dividend yield of 2.1%, the market is divided— is this the next YES Bank déjà vu or a phoenix waiting to rise?
Introduction
IndusInd Bank was once the darling of microfinance and retail lending. Now? It’s in the headlines for the wrong reasons. From massive accounting irregularities to top management exits, 2025 has been a nightmare. The bank is scrambling to restore investor trust, strengthen controls, and raise ₹30,000 Cr to shore up capital.
Investors love a turnaround story, but as we saw with other crisis-hit lenders, survival isn’t guaranteed just because you slapped a “risk controls enhanced” label.
Business Model (WTF Do They Even Do?)
- Retail Banking: Personal loans, vehicle finance, credit cards.
- Corporate Banking: Lending to mid & large corporates.
- Microfinance: Through Bharat Financial Inclusion Ltd (BFIL) – a key revenue driver.
- Treasury Operations: Investments, trading.
- Other Services: Wealth management, trade finance.
In short, they collect deposits and try not to blow it all up in derivative trades. Oops.
Financials Overview
The numbers tell the tale of a troubled bank:
- FY25 Revenue: ₹48,668 Cr (+6% YoY)
- FY25 PAT: ₹2,643 Cr (down from ₹8,950 Cr
