IndusInd Bank share price has imploded this year, making it the worst-performing company in the Nifty 50 index. It has plunged in the last five consecutive weeks, reaching a low of ₹645, its lowest level since November 2020, and 62% below its highest point in 2024. This article explores why the IndusInd stock has imploded and what to expect later this year.
Why the IndusInd share price has crashed
IndusInd, a top Indian private bank, has come under intense pressure in the past 12 months as it continued to underperform its peers like Bajaj and Kotak.
The crisis has been going on for a while, but the situation worsened in October last year when it published weak financial results. Its second quarter’s net interest income dropped by 1% to ₹5,347 crs, while its net profit plunged by nearly 40% to ₹1,331 crs.
This loss trajectory continued in its Q3’25 financial results. Its net interest income dropped by 1% to ₹5,228 crs as its net interest margin narrowed to 3.93%. IndusInd’s net profit fell by another 39% in the last quarter to ₹1,402 crs.
The ongoing deterioration in its business is mostly because of its microfinance division. This is a fast-growing and high-risk business that the company has been banking on in the past few years. The risk is that it provides unsecured loans, where the default rate has surged lately.
At the same time, IndusInd share price has plunged because of the ongoing weak growth in its high-yield loans.
The crash intensified in March after it emerged that there was a discrepancy in its derivatives portfolio. In this, the company identified mismatches in account balances related to past derivatives transactions. The RBI had previously banned internal hedging trades and ordered an internal review.
IndusInd Bank has also gone through some leadership issues in the past few years. The RBI opted to extend the CEO’s tenure by just one year instead of the three that the management had requested. That is a sign that it may have some leadership issues.
Will the IndusInd stock recover?
The ongoing IndusInd stock price crash has become an outlier in India, where other companies are doing well. For example, Bajaj Finance is the best-performing company in the Nifty 50 Index this year as it jumped by 30%.
Other Indian banks like Kotak Mahindra, ICICI, Axis Bank, HDFC, and State Bank of India have eked small gains this year.
IndusInd’s risk is that the company could start shedding customers as confidence wanes. At the same time it is not easy to exit the crisis in the microfinance division, meaning that the losses crisis may continue.
The management has insisted that the bank has adequate resources, with its CET-1 ratio of 15%, higher than other global companies. However, the ongoing lack of confidence may push the RBI to request for more reserves.
IndusInd Bank share price analysis
The weekly chart shows that the IndusInd Bank stock price has been in a strong sell-off since mid-2024, when it peaked at ₹1,673. It recently crashed below the key support at ₹743.50, its lowest point in June 2022.
The stock has also formed a death cross pattern as the 50-week and 200-week Exponential Moving Averages (EMA) crossed each other. All oscillators like the Relative Strength Index (RSI) and the MACD have all pointed downwards.
Therefore, the stock will likely continue falling as sellers target the key support at ₹550. The downtrend may continue for a while. However, a move above the key resistance point at ₹745 will invalidate the bearish outlook.
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