The bank has removed the accounting shortcomings.
Private sector veteran IndusInd Bank suffered a strong setback on Tuesday. As if there has been earthquake in the company’s stock. IndusInd Bank’s share price fell 20 percent in the initial hours of the business today. Lower circuit was installed on the stock. On Tuesday, IndusInd Bank shares fell by 20.01 percent to a level of 52-week to a level of Rs 720.35. The internal review of the bank was estimated to have an adverse effect of about 2.35% on its net worth by December 2024. This decline in the stock was the highest since March 2020.
Shared downgrade
IndusInd Bank shares today came under heavy selling pressure, when analysts made several downgrade amid low probability of income due to heavy discrepancy in private bank’s derivative portfolio. Nuwama Institutional Equities analysts have reduced the stock to ‘hold’, feeling uncomfortable with constant negative developments in the bank and fear of trauma on the “reliability” of the lender.
Brokerage experts stated that IndusInd Bank has faced several negative events in the current financial year (FY-2024-25), including microfinance tension, resignation of CFO before the December quarter results, existing CEOs only one year expansion instead of three and now portfolio disclosures. It has reduced the target price of IndusInd Bank from Rs 1,115 to Rs 750.
Found a demand notice of Rs 21.62 crore
IndusInd Bank was given a notice of about Rs 21.62 crore for the alleged low payment of the Goods and Services Tax (GST) by the tax authorities last month. IndusInd Bank had received an order to this effect from the Deputy Commissioner of Ahmedabad, Gujarat for various GST issues. The bank then said that the financial impact of the demand is up to Rs 21.62 crore including fine. The bank had said that it was considering filing an appeal against the order.
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