1. At a Glance
IndusInd Bank — once the cool private bank that gave loans for your first car and later for your second marriage — is now fighting for survival after an accounting fraud-sized slap. With a loan book of ₹3.6 lakh Cr, deposits of ₹4.1 lakh Cr, and over 40 million customers, it should be India’s 6th largest private bank in peace. Instead, in FY25, profits crashed 87%, GNPA ticked up, and senior management resigned faster than contestants on Bigg Boss. Shareholders? Down 45% in one year. Welcome to India’s latest corporate reality show.
2. Introduction
IndusInd Bank was set up in 1994, when private banking was the hot new thing. Fast forward 30 years — HDFC Bank is the cricket captain, ICICI is the dependable all-rounder, Kotak is the stylish batsman, Axis is the hardworking bowler. And IndusInd? The guy who got out hit wicket.
How did it happen? The bank built dominance in vehicle finance and microfinance (via Bharat Financial Inclusion). It scaled to 3,000+ branches, 3,700+ BFIL outlets, and boasted NIMs above 4%. But cracks began with rising costs, slowing retail demand, and then boom — a ₹1,959 Cr accounting discrepancy in derivatives. Add ₹674 Cr of “interest misrecording” and ₹595 Cr of “unsubstantiated assets,” and suddenly their CFO’s desk looked like a magician’s stage: smoke, mirrors, and vanished profits.
Today, it trades at P/B of 0.9 (cheaper than SBI’s samosa), P/E of 50x (costlier than HDFC!), and carries promoter pledges of 51%. Basically, discount on balance sheet, premium on drama.
3. Business Model (WTF Do They Even Do?)
IndusInd is a full-service commercial bank:
- Retail Banking (66% of revenue): Vehicle loans, mortgages, credit cards, microfinance.
- Corporate Banking (21%): Loans to large and mid corporates, trade finance.
- Treasury (13%): Investments, forex, derivatives (unfortunately, too creatively).
Loan Book Mix (Q2 FY25):
- Large Corporates – 26%
- Vehicle Finance – 25%
- Non-Vehicle Retail – 19%
