IndusInd Bank has been making headlines for both good and bad reasons. While the bank reported strong growth in deposits and loans, it also faced a major accounting issue that led to a huge drop in its stock price.

Here’s a simple breakdown of what’s happening with IndusInd Bank.

1. Strong Growth in Business

In the June quarter, IndusInd Bank showed strong financial performance:

Loans given (Net Advances): ₹2.89 lakh crore (Up 21% from last year)
Deposits collected: ₹3.36 lakh crore (Up 15% from last year)
Retail & Small Business Deposits: ₹1.5 lakh crore (Up from ₹1.43 lakh crore in March 2023)
CASA Ratio (Current & Savings Account deposits): Dropped from 43.2% to 40.1%

This means the bank is growing and getting more business. However, the real problem started when an accounting issue was revealed.

2. Mutual Funds Sold IndusInd Shares Before the Big Crash

Before the accounting issue became public, mutual funds sold a massive ₹1,600 crore worth of IndusInd Bank shares in February.

Some major sellers were:

Kotak Mutual Fund → Sold ₹510 crore worth of shares
Motilal Oswal Mutual Fund → Sold ₹126 crore worth of shares
PPFAS Mutual Fund → Reduced their stake

Interestingly, Quant Mutual Fund saw an opportunity and bought ₹305 crore worth of shares in February.

3. Stock Crashes 27% After Accounting Issue

On March 11, IndusInd Bank’s stock crashed by 27% after the bank announced problems in its derivatives accounting before April 1, 2025.

Estimated Loss: ₹1,577 crore
Market Value Lost: ₹20,000 crore
F&O Ban: IndusInd Bank was put under the Futures & Options (F&O) ban, meaning no new trading positions could be made.

4. IndusInd Bank CEO’s Assurance

IndusInd Bank’s MD & CEO, Sumant Kathpalia, said that despite this issue:

The bank will still make a profit in the March quarter
This is a one-time problem, not a long-term issue

On March 13, the stock recovered 4.4%, closing at ₹684.7, but it is still under trading restrictions.

5. What’s Next for IndusInd Bank?

The bank is still financially strong, but investor confidence is shaken.
The stock may remain volatile in the short term.
Investors are waiting to see how the bank fixes the issue before making further decisions.

Final Thoughts

IndusInd Bank is facing a tough time due to its accounting issue, but its core business is still growing. Some investors see this as a buying opportunity, while others are staying cautious.