IndusInd Bank share price jumps 5% after THIS RBI statement. Time to buy?

IndusInd Bank share price jumped over 5% in early trade on Monday after the Reserve Bank of India (RBI) assured customers that the private lender remains ‘well-capitalised’, with a ‘satisfactory’ financial position. IndusInd Bank shares rallied as much as 5.19% to ₹707.00 apiece on the BSE.

“The Reserve Bank would like to state that the bank is well-capitalised and the financial position of the bank remains satisfactory,” RBI said in a statement issued on March 15, even as it directed the bank’s board to complete remedial action relating to estimated ₹2,100 crore accounting discrepancy within this month.

Last week, IndusInd Bank disclosed a discrepancy in accounting with an estimated impact of 2.35% of the bank’s net worth. Soon after the disclosure, IndusInd Bank witnessed a massive price correction.

“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 regulatory requirement of 100 per cent,” RBI said.

Basis the disclosures available in public domain, IndusInd Bank has already engaged an external audit team to comprehensively review their current systems, and to assess and account for the actual impact expeditiously, it added.

The Board and the management have been directed by Reserve Bank of India to have the remedial action completed fully during the current quarter viz., Q4FY25, 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 Reserve Bank,” the banking regulator said assuaging concerns of customers.

IndusInd Bank had informed that the accounting lapse was noted around September-October last year and the bank gave a preliminary update to the RBI about this last week. The final number will be known after the external agency, which the bank has appointed, finalises its report by early April, according to the lender.

HDFC Mutual Fund Raises Stake 

HDFC Mutual Fund has increased its stake in IndusInd Bank through various schemes. In a stock exchange filing dated March 13, IndusInd Bank disclosed a communication from HDFC Asset Management Company, stating that the aggregate holdings of HDFC Mutual Fund schemes in the bank stood at 5.02% of its paid-up share capital as of the close of business on March 11, 2025.

Prior to this acquisition, HDFC Mutual Fund held 3,75,29,368 shares of IndusInd Bank, representing a 4.82% stake. Following the purchase of an additional 15,92,410 shares (equivalent to a 0.20% stake) through an open market transaction on March 11, its total shareholding increased to 3,91,21,778 shares, or a 5.02% stake in the company.

Should you buy IndusInd Bank shares?

IndusInd Bank share price experienced sharp volatility, with a sharp plunge of more than 28% last week.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, noted that IndusInd Bank shares tested its weekly order block at ₹611 on Wednesday, triggering a sharp 19% rebound with a massive 1,351% surge in volume compared to its 50-day average.

“While this suggests a potential dead cat bounce toward ₹740, the broader structure remains weak. Market sentiment is bearish, and downside risks persist. If momentum fades, IndusInd Bank stock price could slide toward ₹551 in the coming months,” Jain said.

He suggests traders remain cautious amid heightened volatility.

At 9:20 AM, IndusInd Bank shares were trading 2.87% higher at ₹691.40 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.