IndusInd Bank Share Price in Focus Amid Shareholding Changes and Internal Issues

IndusInd Bank has seen notable changes in its shareholding pattern for the January to March 2025 quarter. The updates, released on the stock exchanges, highlight a shift in ownership across different categories, reflecting broader market sentiment and investor movements. 

Promoter Shareholding Declines Slightly 

IndusInd Bank’s promoter stake saw a marginal decline during the quarter, with promoters now owning 15.83% of the bank, down from 16.29% in the December quarter

Retail Shareholding Sees Growth 

Interestingly, retail shareholding in IndusInd Bank has shown an increase during the same period. In the quarter, when the stock price was under pressure, the number of retail shareholders grew from 6.17 lakh to 7.47 lakh, representing an increase from 7.9% to 9.17% in total shares held.  

Mutual Funds and Institutional Stake Changes 

Institutional investors also adjusted their stakes during the quarter. Domestic mutual funds reduced their stake in IndusInd Bank to 27.55%, down from 30.31% in December. However, the emergence of Mirae Asset Largecap Fund with a 1.52% stake in March, which was absent in the December shareholding, highlights the shifting preferences of institutional investors.  

Furthermore, Life Insurance Corporation of India (LIC) saw a slight reduction in its stake to 5.08% from 5.23%, while foreign portfolio investors (FPIs) significantly increased their stake to 29.53%, up from 24.74% in the previous quarter. 

Exit of Two Mutual Funds 

Two prominent fund houses, Kotak Mutual Fund and Quant Mutual Fund, exited their positions in IndusInd Bank during the quarter. Kotak Equity Arbitrage Fund, which held a 1.26% stake in December, no longer appears in the March filings. Quant Mutual Fund, which likely held less than 1%, is also absent.  

Discrepancies and Impact on Net Worth 

On April 15, 2025, the bank informed the stock exchanges that on March 10, 2025, IndusInd Bank disclosed discrepancies in the account balances of its derivative portfolio, estimating an adverse impact of ~2.35% of its net worth as of December 2024.  

An external agency was engaged to independently review the internal findings, and the report was received on April 15, 2025. The report identified discrepancies related to derivative deals, quantifying the negative impact at ₹1,979 crore as of 30th June 2024. Based on the external report, the bank assessed the adverse impact on its net worth (on a post-tax basis) to be 2.27% as of December 2024.

The bank stated that it will reflect this impact in its financial statements for FY 2024-25 and continue to enhance its internal controls concerning derivative accounting operations. 

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IndusInd Bank Share Price Performance  

On April 16, 2025, IndusInd Bank share price (NSE: INDUSINDBK) opened at ₹747.00, up from its previous close of ₹735.90. At 9:35 AM, the share price of IndusInd Bank was trading at ₹746.35, up by 1.42% on the NSE. 

Conclusion 

IndusInd Bank’s latest shareholding pattern reflects a mixed outlook, with some institutional investors scaling back their positions, while retail and foreign investors increased their holdings. The bank’s internal discrepancies and the resulting financial impact have added to the uncertainty. The upcoming financial reports will likely provide more clarity on the impact of these challenges and opportunities moving forward. 

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