IndusInd Bank Stock Sinks to ₹1,000.60, Hits 52-Week Low Amid Weak Q2 Results

On November 18, 2024, IndusInd Bank’s stock has dropped to a new 52-week low of ₹1,015.50, a notable decline from its previous high of ₹1,258.15. The stock is currently down by 0.16%, reflecting market pressures and cautious investor sentiment about the bank’s performance, impacted by weak quarterly results and declining market indices.

Stock Performance

On the NSE, the stock dropped 1.61% in early trade, hitting an intraday low of ₹1,000.60. Similarly, it fell 1.8% on the BSE, reaching a 52-week low of ₹1,001. The stock has been on a downward trajectory for the last 4 days following the announcement of poor Q2 FY25  results.

Market Context

The decline in IndusInd Bank’s stock coincided with a broader market downturn. Benchmark indices Nifty and Sensex recorded their lowest levels since June 24, with Nifty falling to 23,362.35 points and Sensex dropping to 77,015.75 points, marking their weakest performance in five months.

Q2 FY25 Results Impact

IndusInd Bank reported a 39.5% year-on-year (YoY) decline in net profit for Q2FY25, with profit falling to ₹1,331.29 crore. This was mainly due to a sharp increase in provisions, which almost doubled to ₹1,820 crore compared to ₹974 crore in the same period last year.

The bank’s net interest income (NII) grew 5% YoY to ₹5,347 crore. However, its net interest margin (NIM) declined to 4.08%, down from 4.29% last year, due to a reduced share of microfinance loans. The yield on assets rose to 9.69%, while the cost of funds increased to 5.61%, compared to 5.40% a year ago.

Stock Performance

Following the Q2 results announcement on October 25, the stock dropped 19% to ₹1,024. Year-to-date, IndusInd Bank shares have declined over 37% and more than 32% in the past year. 

On November 18, 2024, Indusind Bank share price opened at ₹1,015.50, touching the day’s low of ₹1,000.60, reflecting a decline of 1.50% as of 02:20 PM on NSE.

About IndusInd Bank Limited

IndusInd Bank Limited, established in 1994 under the Banking Regulation Act of 1949, is a publicly traded commercial bank. It offers a broad range of banking and financial services to both corporate and retail customers and manages treasury operations. The bank operates across India, including at the International Financial Service Centres (IFSCs). It was the first private sector bank in India to begin operations.

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.