At a Glance
IndusInd Bank just reported a ₹684 Cr Q1 profit, but don’t be fooled—this is after a bruising year with accounting frauds worth ₹1,959 Cr, CEO resignation, and rating downgrades. The stock trades at ₹802 (down 43% YoY) and barely clings to 1× book value. With promoter pledging at 50.9% and contingent liabilities in trillions, this is less a bank and more a financial thriller.
Introduction
Imagine watching a bank try to do yoga while its books are on fire. That’s IndusInd for you. Once a darling of private banking, it is now battling scandals, derivative discrepancies, and an RBI-breathing-down-its-neck situation. Numbers? Revenue ₹12,264 Cr, Net Profit ₹684 Cr, but a one-time fraud provision of ₹2,236 Cr burned a hole. Investors, grab popcorn.
Business Model (WTF Do They Even Do?)
IndusInd Bank offers retail, corporate, and treasury services across India, plus microfinance through Bharat Financial Inclusion Ltd.
- Retail: Loans, deposits, cards
- Corporate: Working capital, trade finance
- Treasury: Investments, trading, derivatives (yes, the troublemaker)
In short, they do everything banks do, but lately with extra drama.
Financials Overview
- Revenue (Q1 FY26): ₹12,264 Cr
- Net Profit: ₹684 Cr (-68% YoY)
- ROE: 4.1%
- ROCE: 6.5%
- Gross NPA: 3.64%
- Net NPA: 1.12%
Verdict: Weak profitability, rising NPAs, and regulatory stress. Ouch.
Valuation
- P/E: 53× (high for this mess)
- CMP / BV: 0.97×
- Fair Value Range: ₹600–₹850
Market’s saying, “We’ll wait for the new CEO to clean this up.”
What’s Cooking – News, Triggers, Drama
- CEO & Deputy CEO Resigned: amid derivative misreporting.
- Fraud Accounting: ₹1,959 Cr hit from derivative trades.
- SEBI & RBI Investigations: Ongoing scrutiny on insider trading and discrepancies.
- Fund Raise: ₹30,000 Cr planned—aka diluting the pain.
- Ratings: Downgrades from Moody’s & CRISIL; outlook negative.
This is the kind of drama even Netflix would greenlight.
Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 4,57,804 | 5,14,935 | 5,54,018 |
| Liabilities | 4,57,804 | 5,14,935 | 5,54,018 |
| Net Worth | 54,622 | 62,797 | 64,350 |
| Borrowings | 49,011 | 47,611 | 53,704 |
Commentary: Assets growing, but credibility shrinking.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | -12,438 | -16,843 | 18,113 |
| Investing | -441 | -625 | -647 |
| Financing | 1,115 | -2,242 | 4,876 |
Punchline: Cash is flowing, but investors are outflowing.
Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE % | 14% | 15% | 4% |
| ROA % | 1.7% | 1.8% | 0.5% |
| NIM % | 6% | 7% | -10% |
| D/E | 0.9 | 0.8 | 1.0 |
Verdict: Ratios went from sexy to “call the doctor” levels.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 36,368 | 45,748 | 48,668 |
| Net Profit | 7,390 | 8,950 | 2,643 |
Commentary: Profit tanked 70% YoY thanks to fraud write-offs.
Peer Comparison
| Bank | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| HDFC Bank | 3,42,193 | 70,575 | 22× |
| ICICI Bank | 1,90,830 | 52,891 | 20× |
| Axis Bank | 1,28,564 | 27,862 | 12× |
| IndusInd Bank | 48,385 | 1,175 | 53× |
Humour: Among peers, IndusInd is the one still explaining itself to auditors.
Miscellaneous – Shareholding, Promoters
- Promoters: 15.8% (half pledged)
- FIIs: 33.7% (falling)
- DIIs: 33.2%
- Public: 16.9%
Promoter pledge screams “we need cash.”
EduInvesting Verdict™
IndusInd Bank is battling frauds, leadership exits, and a trust deficit. The planned fund raise and management overhaul may stabilize things, but recovery will take time.
Final Word: It’s a high-risk bet—either a turnaround story or a slow bleed.
Written by EduInvesting Team | 28 July 2025
SEO Tags: IndusInd Bank, Accounting Fraud, Private Banks, RBI Investigation, Banking Stocks
