IndusInd Bank: Expert Explains Why The Stock Could Bounce Back Post-Investigations

IndusInd Bank has faced significant challenges, being the only F&O stock down on a weekly basis and experiencing a 30% drop in March alone. On Business Today TV's "Market Today," Sudip Bandyopadhyay, Group Chairman, Inditrade Capital, addressed concerns of long-term shareholders. He reassured that the bank remains fundamentally strong, with no issues regarding capital adequacy or asset quality. Sudip Bandyopadhyay pointed out the attractive valuation of 0.7 times its FY27 book value, significantly cheaper than many other banks. He acknowledged the uncertainty surrounding internal and external reviews, including a potential forensic audit, which are assessing a reported ₹1,500 crore loss at the PAT level. However, he emphasized that even if this loss is confirmed, it represents roughly one quarter's profit. He also highlighted the promoter's commitment to support the bank if additional capital is needed. While the timeline for the stock to recover its previous valuation is uncertain, Sudip Bandyopadhyay suggested that aggressive investors might consider buying at current levels, given the low valuation. He believes that once the investigations and audits are completed, the stock will likely begin to move upward, as a bank like IndusInd cannot remain at such a low book value for an extended period.