IndusInd Bank Shares Surge After RBI Assurance: Should You Buy or Hold Off?

IndusInd Bank shares bounced back on Monday, rising by 0.72% to close at Rs 676.95, following a one-day pause. Despite a 35.40% decline over the past month, today's gains came after the Reserve Bank of India (RBI) confirmed that the private lender is well-capitalized and maintains a stable financial position.

"As per auditor-reviewed financial results of the bank for the quarter ended December 31, 2024, the bank has maintained a comfortable Capital Adequacy Ratio of 16.46 per cent and Provision Coverage Ratio of 70.20 per cent. The Liquidity Coverage Ratio (LCR) of the bank was at 113 per cent as on March 9, 2025, as against the regulatory requirement of 100 per cent," IndusInd Bank stated in a BSE filing over the weekend.

"The Board and the management have been directed by Reserve Bank to have the remedial action completed fully during the current quarter viz., Q4 FY25, after making required disclosures to all stakeholders. As such, there is no need for depositors to react to the speculative reports at this juncture. The bank's financial health remains stable and is being monitored closely by the Reserve Bank," it also said.

Two out of three market experts recommended avoiding IndusInd Bank stock at its current levels, while one advised high-risk investors to consider adding it gradually.

"I won't recommend buying this stock until the Q4 numbers are out. There are better opportunities available at present. Unless there is a firm growth story coming out of IndusInd Bank, I think the pain could sustain further," Vinit Bolinjkar, Head of Research at Ventura Securities, told Business Today.

"The stock is likely to remain volatile. It may be wise to stay on the sidelines. Currently, the Rs 770-800 range appears to be the new intermediate resistance level, while the Rs 600-580 zone serves as the intermediate support zone for the near term," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"After an unprecedented fall, we are witnessing some buying interest after the management commentary and the RBI's assurance. From a long-term view, the counter looked attractive and investors with a high-risk appetite can add IndusInd Bank in a staggered manner," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

As of December 2024, the promoters held a 16.29% stake in the bank.