1. At a Glance
The latest quarter of IndusInd Bank could be summed up in one line — “Yeh balance sheet kuch keh rahi hai, par samajh nahi aa raha.”
Once the poster boy of private banking, IndusInd has now turned into a cautionary tale of what happens when aggressive growth meets bad timing and worse PR. The bank reported a Q2 FY26 net loss of ₹437 crore, its first red quarter in years, thanks to higher provisions, NIM compression, and the hangover of a ₹255 crore “accounting irregularity” that came to light earlier this year.
The stock trades at ₹751 (Oct 17, 2025), down 44% YoY, at a P/B of 0.9x — basically, the market is saying “we trust your calculator more than your management.” Book value stands at ₹832, while ROE has collapsed to 4.02% (down from 15% two years ago). CRAR at 17.1% remains healthy, but that’s like complimenting someone’s haircut at their own funeral.
With ₹4.12 lakh crore deposits, ₹3.57 lakh crore loan book, and over 40 million customers, IndusInd still has scale. But the recent loss, top-management reshuffle (Rajiv Anand stepping in as MD & CEO in Aug 2025), and promoter pledge of 50.9% have turned the market mood from bullish to nervous laughter.
2. Introduction
There was a time when IndusInd was everyone’s favorite “second-tier HDFC.” It grew faster than ICICI, lent riskier than Axis, and somehow still got away with it. Then 2025 arrived — and karma sent a reminder notification.
Founded in 1994, IndusInd was supposed to be the “new-age private bank.” Its growth engine: a turbocharged retail portfolio (66% of loans) and microfinance subsidiary Bharat Financial Inclusion Ltd (BFIL) that reached 13 million rural borrowers. But microfinance, like spicy pani-puri, tastes great until it burns the next day.
A drop in NIM (–17 bps QoQ to 4.08%), a rise in opex, and that ₹255 crore accounting misadventure have shaken investor faith. The bank’s Q2 revenue of ₹11,609 crore fell 8.5% QoQ, while provisions shot up enough to turn the profit red.
And just as analysts began writing eulogies, in walked Rajiv Anand — ex-Axis Bank veteran, newly minted MD & CEO. His task? Convince the market that this isn’t another Yes Bank prequel.
3. Business Model – WTF Do They Even Do?
At its core, IndusInd Bank runs the classic “collect deposits, lend aggressively, repeat” model — but with its own masala twist.
