IndusInd Bank Share Price Hits 52-Wk Low; Falls 2%

On December 13, 2024, IndusInd Bank’s share price traded 2.15% lower at ₹976.50 as of 12:05 PM on the NSE. The stock opened at ₹991, lower than the previous close of ₹997.95. The share dropped to a fresh 52-week low of ₹965.55 today.

Regulatory Concerns Weigh

IndusInd Bank’s share price is under pressure due to concerns arising from regulatory tightening by the Reserve Bank of India (RBI). Investors are increasingly cautious about the banking sector, viewing it as challenging, with only a select few high-quality banks standing out as attractive investment options.

While any potential relaxation in the current draft regulations could improve the sector’s loan growth and profitability outlook, the chances of such changes remain uncertain. These factors are contributing to the current downward pressure on the bank’s stock price.

Q2 FY25 Financial Highlights 

IndusInd Bank’s Net Interest Income (NII) for the quarter ending September 30, 2024 (Q2FY25) was ₹5,347 crore, reflecting a 5% increase year-on-year. The bank’s Net Interest Margin (NIM) for Q2FY25 stood at 4.08%, compared to 4.29% in Q2FY24.

The decline in NIM was partly due to a reduction in the proportion of microfinance loans within the overall loan portfolio.

Meanwhile, the net profit for Q2FY25 was ₹1,331 crore, down from ₹2,202 crore in the same quarter of the previous year. Pre-Provision Operating Profit for the quarter was ₹3,600 crore, compared to ₹3,909 crore for the same period last year.

About IndusInd Bank

IndusInd Bank is a leading private sector bank known for its innovative financial solutions and exceptional banking services. Serving a diverse clientele, including government bodies, public sector enterprises, retail customers, and large corporations, the bank offers a wide range of products such as microfinance, personal and SME loans, vehicle financing, credit/debit cards, and digital banking services. It also provides specialised services to affluent clients and the NRI community, along with ESG-linked financial products.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.