Stocktwits - Shares of IndusInd Bank (NSE:INBK) fell nearly 3% on Friday after the private sector lender disclosed fresh accounting irregularities, further denting investor confidence in its financial governance.
The bank revealed it had overstated interest income by ₹674 crore over three consecutive quarters in FY25, based on findings from an internal audit. While it has since corrected the error in its books, the latest disclosure has sparked fresh concerns about the bank’s internal controls.
This comes on the heels of another recent lapse in the bank’s foreign exchange derivatives portfolio in March, which was estimated to impact around 2.35% of its net worth as of December 2024.
Leadership instability has added to the pressure. In late April, CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned, prompting the board to establish an interim Committee of Executives to oversee operations for up to three months or until a new MD & CEO is appointed.
From a technical standpoint, analysts see further downside for the stock.
SEBI-registered analyst Thoviti Brahmachary flagged a rounding top breakdown, a bearish chart pattern suggesting the potential for deeper declines.
Currently, the stock is trading near its mean level. Chary highlighted that if IndusInd Bank falls below the critical support of ₹769, it could open the door for a deeper decline, potentially testing the ₹665 level.
Kush Ghodasara highlighted that IndusInd Bank has remained under pressure ever since the foreign exchange derivatives fiasco, with its stock price entrenched in a persistent downtrend since peaking in September 2024.
On the weekly chart, the stock has been steadily declining within a downward channel, accompanied by heavy trading volumes, indicating sustained selling interest.
Notably, the price has been trading below its 15-week moving average of 834 and is currently about 30% below the 200-week moving average, reflecting significant long-term weakness.
Technical indicators reinforce this bearish outlook: the Relative Strength Index (RSI) is on the verge of a negative crossover, which could trigger fresh short positions, while the MACD remains flat, offering little sign of a reversal.
Ghodasara pegged the next major support near ₹484 and recommended a stop loss at ₹840 for short-term traders.
Data on Stocktwits shows that retail sentiment has turned ‘bearish’ from ‘neutral’ on this counter.
IndusInd Bank sentiment and message volume on May 16 as of 11:30 am IST. | source: StocktwitsIndusInd Bank shares have fallen 20% year-to-date (YTD).