IndusInd Bank Shares Saga: Management Optimistic on Furture Growth

On March 12, 2025, IndusInd Bank shares are experiencing significant volatility following their largest single-day drop on record the previous day.

The stock initially plunged by as much as 7% in early trading on March 12 but quickly rebounded from its lows. At 10:20 AM, IndusInd Bank share traded with a gain of over 4% and reached a day high of ₹694.75

It is important to note that the stock is under the F&O ban, meaning no new positions can be taken.

At the lowest point on Wednesday, IndusInd Bank’s market capitalisation briefly fell below ₹50,000 crore. The record drop on Tuesday led to a loss of nearly ₹20,000 crore in the bank’s market capitalization.

Management Optimistic on Business

In an exclusive interview with CNBC-TV18, IndusInd Bank’s MD & CEO, Sumant Kathpalia, reassured investors, stating that the bank will remain profitable in the March quarter despite the significant treasury loss.

“This is a one-off event and not a recurring issue. We will absorb the loss this quarter, but the bank’s profitability will continue,” Kathpalia confirmed.

Balance Sheet Overview

As of December 31, 2024, the balance sheet footage stood at ₹5,49,499 crores, compared to ₹4,88,865 crores on December 31, 2023, reflecting a growth of 12%.

Deposits on December 31, 2024, were ₹4,09,438 crores, up from ₹3,68,793 crores as of December 31, 2023, marking an 11% increase. CASA deposits amounted to ₹1,42,818 crores, with Current Account deposits at ₹45,872 crores and Savings Account deposits at ₹96,946 crores. CASA deposits represented 35% of total deposits as of December 31, 2024. Retail deposits under the LCR stood at ₹1,88,731 crores on December 31, 2024, compared to ₹1,65,371 crores on December 31, 2023, showing a 14% year-on-year growth.

Advances as of December 31, 2024, were ₹3,66,889 crores, up from ₹3,27,057 crores as of December 31, 2023, reflecting a 12% increase.

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