IndusInd Bank Shares Rise Despite Huge Loss: Is the Worst Behind Us?

Here’s a bit of a shocker: IndusInd Bank’s shares actually went up on May 22, 2025, even after they announced a huge loss for the first few months of this year. They reported a loss of ₹2,329 crore, which is the first time in 19 years the bank has posted a loss! So, why did the stock price go up? Let’s break it down and try to make sense of it.

So, What Happened to Cause This Huge Loss?

IndusInd Bank ended up reporting a big loss because of some errors in their financial records. They messed up how they recorded some trades and loans, which ended up costing them around ₹2,000 crore. Yikes, right?

Also, the bank’s usual income from lending money (called Net Interest Income or NII) dropped a massive 43%. That’s a lot of lost money, and it definitely hurt their overall profits.

Wait, the Stock Went Up? That’s Weird, Right?

Here’s where things get interesting. Even though the bank posted such a huge loss, its shares actually went up by more than 3%. You might be wondering, “How does that make sense?” Well, investors might be thinking that the bad news is already built into the stock price. Basically, they think the worst of the bad news is already reflected in how much the stock is worth. So, people are hoping that things might start getting better from here.

What Are Experts Saying?

After the big loss, a lot of analysts downgraded their outlook for IndusInd Bank. They’re concerned that the bank has too many problems to handle right now. For example, ICICI Securities dropped their target price for the stock to ₹850 because of all the mess with the bank’s internal issues.

But not all experts are as pessimistic. A few, like Macquarie, are still confident about the bank’s future. They think the problems are just temporary and kept a target price of ₹1,210. So, there’s a split opinion on what’s going to happen next.

What About the Leadership Changes?

Now, here’s another layer of drama. The CEO and Deputy CEO of the bank resigned recently, leaving the bank in search of new leaders. This is kind of a big deal, especially since they’re already dealing with so many problems. The fact that they don’t have solid leadership in place could add even more uncertainty about the future.

To make matters worse, some credit rating agencies have lowered their ratings for the bank. This just means that they see more risk in investing in the bank right now, which doesn’t help the situation.

Is IndusInd Bank Going to Be Okay?

Here’s the million-dollar question: Is IndusInd Bank in real trouble, or can it bounce back? Well, the fact that their stock went up after the bad news shows that some investors think the worst might be over. The bank has said they’re working hard to fix everything and that the mistakes are in the past.

But, a lot depends on who they choose as the new leaders. If they bring in the right people and clean up their internal processes, things might turn around. But, it’s going to take time, and we’ll have to wait and see.