Despite the whistleblower’s allegations, we feel the worst-case pain, too, is manageable for IndusInd Bank
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
IndusInd Bank (IIB CMP: Rs 1061, Market cap: Rs 82,150 crore) corrected by close to 11 percent on November 8 as the Street got spooked by an anonymous whistleblower’s allegation of ever-greening of loans in its microfinance business, process lapses in loan disbursal and exits at the senior management level. While the management had promptly allayed these concerns, the development was bound to shake nerves with the recent memory of troubles at the bank. It was only in 2020…
