IndusInd Bank Shares Shoot Up As RBI Says Bank Is 'well-Capitalised'

IndusInd Bank has been in the news due to significant volatility, experiencing a sharp downturn followed by a recovery. This comes after the RBI released a report stating that the lender is well-capitalized, with a Capital Adequacy Ratio of 16.46% and a Provision Coverage Ratio of 70.20% as of December 31, 2024. Furthermore, the bank's Liquidity Coverage Ratio (LCR) stands at 113% as of March 9, 2025, exceeding the regulatory requirement of 100%. In this excerpt from Business Today TV's Market Today show, Vinit Bolinjkar, Head Research, Ventura Securities, provides his assessment of the situation. He notes that IndusInd Bank has experienced such volatility in the past, drawing parallels to 2018. While there's a current uptick, Vinit Bolinjkar advises caution, suggesting that it's prudent to wait until the Q4 numbers are released and the situation is fully resolved. He emphasizes that the damage has already been done to the stock, and while there's a 5% upside today, he believes there are better opportunities in other banking stocks. Vinit Bolinjkar mentions Canara Bank and other private banks like Kotak as examples of potentially more attractive investments. He suggests that until a firm and positive growth story emerges from IndusInd Bank, the stock's pain may persist. Therefore, he recommends exploring alternative investment opportunities in the banking sector, where stronger growth narratives and better management are evident.