IndusInd Bank’s stock took a notable hit on Tuesday, falling over 5% after the bank announced a hefty penalty from GST authorities in Thane. The shares plummeted as low as ₹633.55 on the Bombay Stock Exchange (BSE), reflecting investor concerns over ongoing regulatory issues. This decline comes at a time when the bank is already under scrutiny for discrepancies related to its derivative accounts.

Penalty Imposed by GST Authorities

In a recent regulatory filing, IndusInd Bank disclosed that it has been slapped with a penalty exceeding ₹30.15 crore by the Joint Commissioner of CGST & Central Excise in Thane. The bank is considering filing an appeal against this decision. The statement read: “A penalty of ₹30,15,18,000 has been imposed on the Bank for various GST issues, and we are exploring options for an appeal.”

Impact of Derivative Discrepancies

Adding to the turmoil, the bank has faced significant selling pressure due to revelations of discrepancies within its derivatives portfolio, which could affect around 2.35% of its net worth. Following this announcement, IndusInd Bank’s stock experienced its most significant drop, with shares tumbling 27% in a single trading session.

Management’s Assurance Amidst Challenges

Despite these setbacks, the management of IndusInd Bank remains optimistic. They project a profitable quarter for March 2025 and express confidence about the financial year ahead, despite current losses. Additionally, the Reserve Bank of India (RBI) has reassured stakeholders, declaring that IndusInd Bank is “well-capitalised” and maintains a “satisfactory” financial standing.

Stock Performance Overview

The recent turmoil has led to a steep decline in IndusInd Bank’s stock price, which has fallen 35% over the past month and is down 30% year-to-date (YTD). Over the last six months, shares have dropped an alarming 54%, while the stock has seen a 34% decline over the last two years. As of 2:05 PM, shares of IndusInd Bank were trading at ₹639.75, representing a 4.39% decrease.

Key Takeaways

• Penalty: ₹30.15 crore from GST authorities.
• Stock Price Decline: 5.32% drop to ₹633.55 on BSE.
• Derivative Issues: Discrepancies affecting 2.35% of net worth.
• Management Outlook: Profit expected in March 2025 quarter.
• RBI Statement: Bank remains well-capitalised.

The situation surrounding IndusInd Bank serves as a crucial reminder of the volatility in the banking sector and the impact of regulatory actions on stock performance. Investors are closely monitoring these developments as the bank navigates through these challenges.