IndusInd Bank Share Price Jumps Over 3% Despite Q4 Loss — Should You Buy, Hold, or Sell Now?

The shares of Mumbai-headquartered Induslnd Bank had dipped 5 per cent yesterday to Rs 769.65 after posting higher than expected quarter ended March 2025 losses. However, the private lender was able to reverse the trend after pinning the hopes on the new CEO to tighten internal controls, strengthen governance and likely rebalance the asset mix.  

In today's trading session, the Induslnd Bank stock jumped as much as 3.20 per cent to Rs 796.20.

After the bank uncovered accounting discrepancies, and cam under pressure as result of several audits, the CEO and Deputy CEO exited the firm.

IndusInd Bank Q4 Results

IndusInd Bank has posted a consolidated net loss of Rs 2,329 crore in its Q4 of the fiscal year 2025 in comparison to a net profit of Rs 2,349 crore in the year ago period period amid losses in its derivatives segment.

The private lender reported net interest income of Rs 3,048 crore in Q4FY25 which was down 43% YoY versus Rs 5,376 crore reported in the year ago period.

The banking services provider's Q4FY25 Net Interest Income (NII) was Rs 3,048.3 crore, and provisions stood at Rs 2,522.08 crore compared to Rs 1,743.63 crore last quarter.

The Gross Non-performing Asset (NPA) of the bank stood at 3.13 percent in Q4FY25 in comparison to 2.25 percent in Q3FY25 and 1.92 percent in Q4FY24. The Net NPA ratio stood at 0.95 percent for the March quarter as compared to 0.68 percent in a quarter ago period and 0.57 percent in a year ago period.

This is first earnings report by the lender after it uncovered major accounting discrepancies and has been under scrutiny due to multiple audits and top-level resignations.

At 9.35 am, shares of the firm were quoting Rs 777..8 on the NSE, higher by one percent, after falling up to four percent in the early session.

Should Investors Sell, Buy Or Hold IndusInd Bank Shares?

Brokerage house Institutional Research said, "Despite the Board’s recent efforts at probing the whistleblower complaints, we believe that IIB deserves to undergo a complete overhaul under greater regulatory scrutiny to regain stakeholder credibility, which is likely to be a long grind."" 

Further it said, ”We hack our FY26E/FY27Eearnings estimates by ~45% each, factoring in a growth slump, drop in yields, and softer fee income trajectory. We downgrade our stance to REDUCE with a revised TP of INR665 (0.7x Mar-27 ABVPS).

Brokerage firm Emkay Global said,"Q4 marks one of the worst quarters for IndusInd Bank in terms of both, financial outcome (a staggering loss) and resignation of the entire top management team, amid a spate of accounting (derivative, MFI, other assets/liabilities) derelictions. "We believe these developments could hurt the bank's business and financials in the near-to-medium term."

Therefore, factoring business disruption and management uncertainty, the brokerage trimmed its PAT estimates by 16-34 percent over FY26-28E and retained its 'reduce' call with a cut in target price by 10 percent to Rs 650, down from Rs 725.

As of 10:29 am, May 21 2025, the shares of IndusInd Bank were trading 2.65 per cent higher at Rs 791.55 apiece.