Shares of IndusInd Bank, a private sector banking stock, plummeted by more than 6% in early trading following the release of its June quarter earnings. The stock hit an intraday low of Rs 1,002.50 on the BSE, marking a 6.29% decline. Currently, the stock is trading at Rs 1,006.75, down by 5.90%.
The decline in the bank’s stock value was triggered by its announcement of a consolidated net profit of Rs 1,037.05 crore for the first quarter of FY27, a significant increase from Rs 604.07 crore in the same period last year. Notably, provisions and contingencies decreased by 21% to Rs 1,384 crore, contributing to the positive earnings.
IndusInd Bank’s net interest income (NII) saw a 1% year-on-year rise to Rs 4,685 crore, while its gross non-performing asset (GNPA) ratio improved to 3.25%. The bank also reported a decrease in gross slippages to Rs 1,660 crore from Rs 2,567 crore compared to the previous year.
The bank had previously faced selling pressure in June amid allegations of insider trading, governance issues, and audit deficiencies. Reports indicated that a whistleblower had raised concerns with various authorities, alleging insider trading, financial record manipulation, and other irregularities. Despite these challenges, the bank’s stock has seen a 52-week high of Rs 1,077.80 and a low of Rs 710.85 on the BSE.
