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IndusInd Bank shares crash: Stock's 10-year return turns zero after today’s 23% fall; check details
2 min read | Updated on March 11, 2025, 16:04 IST
SUMMARY
Shares of IndusInd Bank traded 23% lower on Tuesday afternoon, down more than 60% from the 52-week high in January 2025. After today’s fall, IndusInd Bank's 10-year CAGR returns turned zero as compared to more than 10% for other listed private sector peers like HDFC Bank, Kotak Mahindra Bank, ICICI Bank, and Axis Bank.
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IndusInd Bank 10 year returns become Zero after today’s 23% market fall | Image: Shutterstock
The share price has already hit a new 52-week low on Monday after RBI extended its CEO’s tenure by 1 year against the proposal for 3 years. The IndusInd Bank shares have now corrected more than 60% from its recent 52-week high in January 2025. With today’s fall, the 10-year CAGR became zero for IndusInd Bank investors.
Here’s how it fares compared to its private-sector peers
| Bank | 10-year profit CAGR | 10-year share price CAGR |
|---|---|---|
| HDFC Bank | 22% | 12% |
| ICICI Bank | 15% | 15% |
| Axis Bank | 15% | 6% |
| IndusInd Bank | 20% | 0% |
| Kotak Mahindra Bank | 22% | 11% |
(Source: Screener.in)
IndusInd Bank has significantly underperformed as compared to its closest private sector peers. Despite growing at 20% CAGR in profit terms, the share-price returns have turned negative over a 10-year period.
The Bank has been under the scanner of regulators on different occasions. In 2016-17, the Bank faced significant criticism for underreporting its non-performing assets. The RBI audit revealed higher NPA in FY16 and FY17. The one-year extension of CEO tenure also spooked investors on governance issues of the Bank. In the conference call held on March 10, the Bank said, the actual impact on the bank’s balance sheet will be ascertained in the FY25 results, till then IndusInd Bank investors might see more pressure on the share price.
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