On the 11th of March 2025, IndusInd Bank’s stock dropped by 27.16%, closing at INR 655.95. So this Sharp decline was due to many reasons:
Accounting Mistakes in Forex Transactions:
The Bank found an accounting problem in how it handled foreign exchange transactions. On the 10th of March 2025, the bank, due to this, expects to lose between INR 15 billion, which is around $171 million to $229 million. Investors were worried about whether the bank would manage the money and risks.
Global Market Problems:
The stock price fell at a time when the global market was also in trouble. So, there were concerns about the U.S. recession and the problem with the tariffs, which made markets around the world decline. S,o the investors used to sell the shares in many banks, including IndusInd Bank
Leadership Concerns:
The Investors were unsure about the future of this IndusInd bank leadership, as the RBI only gave the CEO Sumant Kathpalia, one more year as CEO instead of the 3 years the bank wanted. So this made the investors wonder if the bank's leadership was stable.
Poor Financial Results Before:
IndusInd Bank had weak financial results, as in the quarter their profit dropped by 39%, which is compared to last year, and it went from INR 2,301 crore to INR 1,402 crore. The bank had more loans, which added pressure on the stock.
Also, check: BSE Share Falls 4.29% – Key Reasons & Insights
Conclusion
In conclusion, the big drop in this bank's shares on 11th March 2025 was because of an accounting mistake, leadership worries, a problem in global markets, and poor past financial results. So this caused investors to lose confidence.
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