IndusInd Bank Share Price Plummets

IndusInd Bank's shares experienced a significant drop, falling 20% to reach a new 52-week low of Rs 720.50. This drastic decline follows the bank's admission of accounting irregularities within its forex derivatives portfolio, revealing a potential post-tax impact of Rs 15.8 billion.

Brokerages React

Following the revelation, several brokerages have revised their outlook on IndusInd Bank. Motilal Oswal downgraded the bank to 'Neutral', adjusting the target price to Rs 925. Nuvama reduced its rating to 'Reduce' with a target price of Rs 750, while Emkay Global downgraded the bank to 'Add' and slashed its target price by 22% to Rs 875.

Investment Strategy Amidst Uncertainty

With the bank's shares declining by 47% over the past year and an additional 20% drop on Tuesday, financial experts suggest that the path to recovery hinges on the outcomes of an independent audit, leadership transition, and the demonstration of robust corporate governance practices.