INDUSINDBK

Repeats story from Sunday with no changes to text

By Aditya Kalra and Siddhi Nayak

NEW DELHI/MUMBAI, March 23 (Reuters) - India's IndusInd Bank INBK.NS has appointed Grant Thornton to conduct a forensic review into accounting lapses detected this month and to check if there is any evidence of fraud or internal misstatements, said two people with direct knowledge of the matter.

IndusInd is India's fifth-largest private lender with a balance sheet of $63 billion. Its shares have lost about 23.4% since it disclosed on March 10 that its derivatives portfolio was overvalued by around 2.35%, or $175 million, after non-compliant internal trades.

The accounting discrepancy contravened Reserve Bank of India rules, though the central bank has said IndusInd is well-capitalised.

IndusInd on Thursday told stock exchanges it had appointed an unnamed firm to identify the root cause of the problem and identify lapses, but it did not say that would include checks related to any potential fraudulent transactions.

The two sources said on Sunday that Grant Thornton was the firm appointed and its extensive forensic review would include assessment of any evidence that indicates fraud in the transactions. They declined to be named as the matter is confidential.

The first source added Grant Thornton would also assign accountability to individuals who were responsible for the lapses, and review the accounting treatment of all derivative contracts.

The source added Grant Thornton would also assess if there were any intentional misstatements internally related to the transactions.

IndusInd and Grant Thornton did not respond to Reuters' requests for comment.

Reuters reported last week that the Reserve Bank of India had urged the CEO of IndusInd Bank and his deputy to step down as soon as replacements were found due to the significant accounting lapses. IndusInd Bank, however, strongly denied the claims, stating they were "factually incorrect."

(Reporting by Aditya Kalra and Siddhi Nayak; Editing by Jamie Freed)

((Email: [email protected]; X: @adityakalra;))

By Aditya Kalra and Siddhi Nayak

NEW DELHI/MUMBAI, March 23 (Reuters) - India's IndusInd Bank INBK.NS has appointed Grant Thornton to conduct a forensic review into accounting lapses detected this month and to check if there is any evidence of fraud or internal misstatements, said two people with direct knowledge of the matter.

IndusInd is India's fifth-largest private lender with a balance sheet of $63 billion. Its shares have lost about 23.4% since it disclosed on March 10 that its derivatives portfolio was overvalued by around 2.35%, or $175 million, after non-compliant internal trades.

The accounting discrepancy contravened Reserve Bank of India rules, though the central bank has said IndusInd is well-capitalised.

IndusInd on Thursday told stock exchanges it had appointed an unnamed firm to identify the root cause of the problem and identify lapses, but it did not say that would include checks related to any potential fraudulent transactions.

The two sources said on Sunday that Grant Thornton was the firm appointed and its extensive forensic review would include assessment of any evidence that indicates fraud in the transactions. They declined to be named as the matter is confidential.

The first source added Grant Thornton would also assign accountability to individuals who were responsible for the lapses, and review the accounting treatment of all derivative contracts.

The source added Grant Thornton would also assess if there were any intentional misstatements internally related to the transactions.

IndusInd and Grant Thornton did not respond to Reuters' requests for comment.

Reuters reported last week that the Reserve Bank of India had urged the CEO of IndusInd Bank and his deputy to step down as soon as replacements were found due to the significant accounting lapses. IndusInd Bank, however, strongly denied the claims, stating they were "factually incorrect."

(Reporting by Aditya Kalra and Siddhi Nayak; Editing by Jamie Freed)

((Email: [email protected]; X: @adityakalra;))

March 21 (Reuters) - Indusind Bank Ltd INBK.NS:

• RECENT MEDIA REPORTS REGARDING TENURE OF THE BANK’S CEO AND DEPUTY CEO ARE FACTUALLY INCORRECT

• BANK STRONGLY DENIES THE CLAIMS MADE IN RECENT MEDIA ARTICLES

Source text: [ID:]

Further company coverage: INBK.NS

(([email protected];))

March 20 (Reuters) - IndusInd Bank INBK.NS said on Thursday it has appointed an independent firm to conduct an investigation into discrepancies found by the bank related to its derivatives portfolio.

(Reporting by Chris Thomas in Bengaluru; Editing by Shounak Dasgupta)

(([email protected]))

By Jaspreet Kalra, Siddhi Nayak and Nishit Navin

MUMBAI/BENGALURU, March 18 (Reuters) - IndusInd International Holdings (IIHL) on Tuesday said it will list the insurance units of Reliance Capital in two to three years, after it completed the transaction to buy the financial services firm.

IndusInd International's bid to acquire debt-ridden Reliance Capital for around 96 billion rupees was approved by a bankruptcy tribunal in February last year.

IIHL Chairman Ashok Hinduja said the company will exit Reliance Capital's units other than broking and asset reconstruction. Reliance Capital also operates in segments such as life, health insurance, and home financing with total assets under management of more than 900 billion rupees, according to its website.

Separately, Hinduja said the recent erosion in IndusInd Bank, the flagship investee company of IIHL, was short-term, adding that the financial services firm has not received any request for capital infusion from the private lender.

Last week, IndusInd Bank flagged a 2.35% hit to its net worth as of December 2024 due to an underestimation of hedging costs related to some past forex transactions, leading to a near 25% slump in its shares since then.

The bank has appointed an external agency to independently review and validate internal findings. Hinduja said that IndusInd Bank's board will review the agency's report and take a call on who is responsible for the forex transaction issue.

(Reporting by Jaspreet Kalra, Siddhi Nayak and Nishit Navin; Editing by Maju Samuel)

(([email protected];))

** Shares of IndusInd Bank INBK.NS rise 4.5% to 703 rupees, marking its best day since early June, last year

** RBI on Saturday said that the private lender is well-capitalised and the financial position of the bank remains satisfactory

** Stock is top gainer in benchmark Nifty 50 .NSEI, which is up 0.6%

** The bank had last week flagged a 2.35% hit to its net worth as of Dec 2024 due to an underestimation of hedging costs related to some past forex transactions

** This led to its sharpest one-day pct decline on record, wiping out about 190.52 bln rupees ($2.19 bln) in market cap

** INBK down ~30% YTD vs 4.7% fall in Nifty 50 .NSEI

($1 = 86.8460 Indian rupees)

(Reporting by Yagnoseni Das in Bengaluru)

(([email protected];))

NEW DELHI, March 15 (Reuters) - India's central bank said on Saturday that private lender IndusInd Bank INBK.NS is well-capitalised and the financial position of the bank remains satisfactory.

Earlier this month, IndusInd Bank reported it had discovered an accounting discrepancy in the way it booked currency derivatives stretching back at least six years.

The resulting estimated $175 million impact roughly equates to an entire quarter's earnings.

The bank backed by the Hinduja Group has had a turbulent few months.

"As such, there is no need for depositors to react to the speculative reports at this juncture," an official at the Reserve Bank of India said in a statement about IndusInd.

"The bank's financial health remains stable and is being monitored closely by Reserve Bank."

The private lender has engaged an external audit team to comprehensively review their current systems, and to assess and account for the actual impact.

(Reporting by Rupam Jain; Editing by Jacqueline Wong)

(([email protected]; +91 7042133028;))

** Shares of IndusInd Bank INBK.NS down 0.5% at 681 rupees

** INBK shares down 27.5% this week on net worth hit due to discrepancies in derivative accounts and a smaller one-year extension to CEO; on course for worst week in five years

** Despite the drop, CLSA stock sees 31% upside in the next 12 months for the private lender

** While CLSA cut its price target to 900 rupees from 1,300 rupees, it maintained its "outperform" rating flagging possibility of some near-term positives

** Two fundamental positives in near term could be recovery in microfinance book and respite for margins on better liquidity and rate cuts - CLSA

** CLSA likens the one-year extension given to INBK's CEO earlier in the week to similar extension given to RBL Bank's RATB.NS MD four years ago

** INBK may also recover like RATB's shares did, if it meets the Street expectations on earnings in the next four-six quarters, says CLSA

** INBK stock down 29% YTD vs 5.5% drop in Nifty Bank index.NSEBANK

(Reporting by Nishit Navin)

(([email protected];))

** Shares of IndusInd Bank INBK.NS jump 6% to 695.6 rupees as it recoups some of its losses after its steepest ever fall of 27.2% on Tuesday

** The private lender's CEO told CNBC-TV18 news channel on Tuesday that the bank will report a profit for Q4 and FY2025, after discrepancies in its derivatives accounts sent its shares tumbling

** On Monday, the bank flagged a 2.35% hit to its net worth as of December 2024 due to an underestimation of hedging costs related to some past forex transactions

** INBK shares were down 7.6% in early trade before reversing course

** INBK trims YTD losses to ~28%

(Reporting by Anuran Sadhu in Bengaluru)

(([email protected]; +91 8697274436;))

** IndusInd Bank INBK.NS slips 10%

** Private lender warns of 2.35% decline in net worth as of December 2024 due to discrepancies in derivative accounts

** Internal derivative trades, not in compliance with RBI's rules enforced from April 2024, impacted net worth

** Macquarie says issues like this raise questions on robustness of bank's internal process, compliance

** Adds this could be one of the reasons for sub-optimal CEO tenor extension

** UBS cuts PT to 770 rupees from 850 rupees; retains "sell"

** Jefferies says impact of discrepancy "clearly reflects weak internal controls"

** Stock rated "buy" on avg; median PT is 1,192.39 rupees, per data compiled by LSEG

** INBK down 37% since surprise Q2 earnings drop

(Reporting by Vijay Malkar)

(([email protected];))

Adds management commentary from conference call throughout

By Siddhi Nayak

MUMBAI, March 10 (Reuters) - Indian private lender IndusInd Bank INBK.NS said on Monday it expects a 2.35% decline in its net worth as of December 2024 due to discrepancies in its derivative accounts found during an internal review.

The Mumbai-based lender said the net worth impact emerged from internal derivative trades, which were not in compliance with rules enforced by the Reserve Bank of India from April 2024.

The discrepancies are not linked to client accounts, deputy CEO Arun Khurana said on a conference call, without disclosing details on the nature of the inconsistencies.

"Effective April 1, we can confirm that there will be no internal trades in our book; we have not entered into any internal trades," Khurana said on the call.

"The internal trades that were there prior to that period which were existing before April 1 have been unwound and all according mark-to-markets taken."

In September 2023, the central bank had revamped rules that govern the investment portfolio of commercial banks.

The discrepancies in the derivatives book were identified by September-October, IndusInd CEO Sumant Kathpalia said on the call.

IndusInd has appointed an external agency to independently review and validate the internal findings, the lender said in a stock exchange filing earlier in the day.

The bank's profitability and capital adequacy remain healthy to absorb this "one-time impact," it added.

The 2.35% impact on the bank's net worth is an internal estimation and may not be very different from what the external agency finds, Kathpalia said.

IndusInd has also looped the RBI on the issue and that could have had a bearing on the regulator's decision to give a shorter extension for the CEO's post, Kathpalia added.

The private lender last week received approval from the RBI to reappoint Kathpalia as CEO for one year, shorter than the board's approval and the central bank's typical three-year extension.

(Reporting by Siddhi Nayak; Editing by Shinjini Ganguli and Maju Samuel)

(([email protected]; x.com/siddhiVnayak;))

March 7 (Reuters) - India's IndusInd Bank INBK.NS received approval from the country's central bank to reappoint Sumant Kathpalia as its chief executive officer and managing director for a period of one year, the lender said on Friday.

(Reporting by Kashish Tandon in Bengaluru; Editing by Shreya Biswas)

(([email protected]; 8800437922;))

Corrects to Thursday from Wednesday in first paragraph

Feb 27 (Reuters) - Shares of most Indian financial companies, especially those of non-bank and microfinance-focussed lenders, jumped on Thursday after the central bank further eased its capital requirements for micro loans and bank credit.

Financial stocks .NIFTYFIN, which include non-bank finance companies (NBFCs), jumped about 1%, outpacing the 0.7% increase in banking stocks .NSEBANK. The benchmark Nifty 50 .NSEI, in comparison, was flat.

The Reserve Bank of India, on Tuesday, trimmed the higher capital requirements introduced in November, the latest in a series of growth-supportive measures since Sanjay Malhotra took over as governor in December.

Under his watch, the RBI has eased liquidity, delayed some regulations and loosened restrictions placed on some lenders.

"We think this bodes well for the financial sector and lays more emphasis on consumption and growth ... and (we) reiterate our bullish view," Macquarie analyst Suresh Ganapathy said in a note.

On the day, Bandhan Bank BANH.NS gained 6%, while Shriram Finance SHMF.NS, AU Small Finance Bank AUFI.NS and Ujjivan Small Finance Bank UJJI.NS rose about 5% each.

Cholamandalam Investment and Finance CHLA.NS and Aditya Birla Capital ADTB.NS advanced 4.5% each. Bajaj Finance BJFN.NS rose 2.7% and IndusInd Bank INBK.NS gained 2%.

In comparison, top private lenders such as ICICI Bank ICBK.NS and HDFC Bank HDBK.NS were up under 1%.

The RBI's move should help most NBFCs' earnings, Morgan Stanley analysts said, picking Aditya Birla Capital, PNB Housing, Shriram Finance and Bajaj Finance as top beneficiaries.

Nomura analysts said banks with higher microfinance loan exposure, such as Bandhan Bank, IndusInd and AU Small Finance Bank, would also get much needed relief.

Since the rules were implemented in November, Aditya Birla Capital's shares had slid 16%, while AU Small Finance Bank and IndusInd Bank sank 28% and 31%, respectively. The worst hit, with a 38% tumble, was Bandhan Bank -- the day's top gainer.

However, Axis Bank Chief Economist Neelkanth Mishra cautioned that a reversal in the broad-based slide in loan growth -- caused by high liquidity costs and the RBI's discomfort with high loan-to-deposit ratios -- could take time.

"While these (RBI) signals should help revive lending, we believe the binding constraint remains durable liquidity."

(Reporting by Sethuraman NR; Editing by Savio D'Souza)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

Feb 25 (Reuters) - Indusind Bank Ltd INBK.NS:

• INDUSIND BANK LTD - FINED 11.5 MILLION RUPEES FOR GST ISSUES

Source text: ID:nBSE5tPqZh

Further company coverage: INBK.NS

(([email protected];;))

Feb 19 (Reuters) - Indusind Bank Ltd INBK.NS:

• PARTNERS WITH PROFESSIONAL GOLF TOUR OF INDIA

Source text: ID:nBSEbgBRwp

Further company coverage: INBK.NS

(([email protected];;))

By Vivek Kumar M and Bharath Rajeswaran

Feb 12 (Reuters) - MSCI added a lone Indian company, carmaker Hyundai Motor India HYUN.NS, to its Global Standard index late on Tuesday and removed Adani Green Energy ADNA.NS as part of its February 2025 index rejig.

The change will come into effect on the market's close on February 28.

In its previous index reconstitution in November, MSCI had added five domestic companies into the global standard index, lifting India's weightage to nearly 20% in the gauge that tracks emerging markets.

The quarterly rebalancing, which was announced overnight, also saw 20 Indian stocks added to MSCI India Domestic Smallcap Index, including Ola Electric Mobility OLAE.NS, Sundaram Clayton SUNM.NS and Zaggle Prepaid Ocean Services ZAGG.NS, among others.

However, 17 stocks were deleted from the MSCI Smallcap index.

According to IIFL Capital, the MSCI rejig could lead to a net passive inflow of about $850 million to $1 billion into Indian markets.

Private lender IndusInd Bank INBK.NS, which is already part of the global standard index, saw a weight increase, according to IIFL Capital.

While MSCI added and removed one Indian stock from the global standard indexes, it added eight stocks from China and deleted 20 stocks from the world's second-largest economy.

Overall, 23 securities will be added and 107 securities deleted from the MSCI global standard indexes as part of the review.

(Reporting by Vivek Kumar M and Bharath Rajeswaran in Bengaluru)

(([email protected];))

By Siddhi Nayak

MUMBAI, Feb 10 (Reuters) - Indian private banks say they expect increases in defaults on small and personal loans due to slower economic growth to continue till the middle of this year.

But the short nature of micro credit and personal loans, typically 12-18 months long, and tighter lending rules unveiled in November 2023 means pressure on their asset quality is unlikely to last beyond that, they add.

The gross bad loan ratios of private banks rose between 1 and 14 basis points in the October-December period from the preceding quarter to range between 1.42% and 4.7% of total loans.

India expects to log economic growth of 6.4% in the year ending in March, its slowest pace in four years.

The resulting rise in sour loans and tighter lending rules have made banks cautious about micro, personal and credit card loans in particular. That's led to a slower pace of bank credit growth in December for a sixth consecutive month.

Ashok Vaswani, CEO of Kotak Mahindra Bank KTKM.NS, told an analysts' call last month that delinquency trends in personal loans improved in the December quarter, while those for credit cards plateaued and will decline in the next few quarters.

Kotak, the No.4 private lender by assets, remains watchful of micro credit loans given to borrowers in rural areas for small business needs, where stress could take "at least another quarter" to normalise, he added.

India's rural economy has suffered from aggressive lending practices and disruptions brought on by national and provincial elections, leading to a rise in defaults, according to analysts.

But rural demand has revived over the last few quarters after a good monsoon season, while the financial health of large corporates and demand for mortgages - two key engines for credit growth - remain largely intact.

IndusInd Bank INBK.NS, the country's No. 5 private sector lender, has been one of the most affected by defaults with its gross bad loan ratio climbing 14 basis points to 2.25% in the December quarter over the preceding period.

Even so, it expects asset quality in its micro credit portfolio to start stabilising from the April-June quarter, CEO Sumant Kathpalia told an analysts' call.

The Reserve Bank of India also does not expect a dramatic climb for the sector's bad loan ratio, predicting it will rise to 3% by March 2026 from a 12-year low of 2.6% in September 2024.

India's bank sector index .NSEBANK is down 1.4% this year, underperforming the broader market's .NSEI 0.4% loss.

Mirae Asset Investment Managers (India) has a positive view on the sector over 18-24 months due to attractive valuations, said its Mumbai-based fund manager Gaurav Kochar.

"The peak of the stress in the unsecured and microfinance segment is largely behind us," he said. "Private lenders are trading at a discount in terms of last 5 years mean on price-to-book value, which is a trigger to buy."

(Reporting by Siddhi Nayak; Editing by Sumeet Chatterjee and Edwina Gibbs)

(([email protected]; +91 22 6921 7848; Reuters Messaging: X: https://twitter.com/siddhiVnayak))

** India's IndusInd Bank INBK.NS up for eighth straight session, rising 16% in the period to 1,078.70 rupees, highest level in nearly 3 months

** Expectations of MSCI weight increase, reasonable valuations, and hopes of easing stress in microfinance segment aiding gains in INBK

** Stock's weight in MSCI index to be doubled, leading to $145 million inflows, says JM Financial Services

** MSCI index rebalancing scheduled after India market hours on Feb. 11

** Current valuations suggestive of structural 1% RoA profile and market share loss, which is unjustified, ICICI Securities said on Feb. 1

** Says INBK well positioned on the interest rate cycle with high share of fixed-rate loans and non-retail deposits

** Analysts average rating on stock "Buy"; median PT 1,280 rupees - LSEG data

(Reporting by Vivek Kumar M)

(([email protected]))

Jan 31 (Reuters) - Indusind Bank Ltd INBK.NS:

• INDUSIND BANK CEO: SLIPPAGES WERE MOSTLY FROM MICROFINANCE SEGMENT GIVEN INDUSTRY TREND

• INDUSIND BANK CEO: WROTE OF MICRO FINANCE LOANS WORTH 3.44 BILLION RUPEES IN Q3

• INDUSIND BANK CEO: REMAIN CAUTIOUS ON MICROFINANCE SEGMENT, STABILITY MAY TAKE ONE MORE QUARTER

• INDUSIND BANK CEO: SAW SLIPPAGES WORTH 6.95 BILLION RUPEES FROM MICRO FINANCE LOANS

• INDUSIND BANK CEO: SHOULD SEE ABOVE 4% NIM FROM NEXT YEAR ONCE MICRO FINANCE STRESS STABILISES

• INDUSIND BANK CEO: COLLECTIONS IN KARNATAKA GETTING CHALLENGING

• INDUSIND BANK CEO: ONE CORPORATE REAL ESTATE ACCOUNT SLIPPED AS NPA IN Q3

• INDUSIND BANK CEO: HAVE SLOWED DOWN GROWTH IN MICRO FINANCE SEGMENT

• INDUSIND BANK CEO: ONCE STABILITY ON MICRO FINANCE COMES IN, CAN SEE OVERALL LOANS TO GROW AT AROUND 15-16%

• INDUSIND BANK CEO: BANK SHOULD GET BACK TO NORMALISATION IN NEXT COUPLE OF QTRS

Source text: [ID:]

Further company coverage: INBK.NS

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Jan 23 (Reuters Breakingviews) - A small-loan crisis is creeping up on India’s banks. Bad debt inched up at the $146 billion HDFC Bank HDBK.NS and other private lenders in the three months to the end of December, and the central bank recently warned of a deep rot in small loans. The $2 trillion banking system is better prepared for an asset quality crisis than a decade ago, but a stalling economy could batter its defences.

HDFC’s gross bad loan ratio rose six basis points from the end of September to 1.42%. Axis Bank AXBK.NS doubled its provisions and contingencies from the same three-month period in the previous year to account for defaults on unsecured personal loans, and Kotak Mahindra Bank KTKM.NS raised them by 37%.

India’s banks learnt some lessons from the last blowup in 2015-16, when a string of chunky project loans left their balance sheets bleeding. At 16.7%, their capital as a share of risk weighted assets is nearly four percentage points higher than in 2014. The share of the top 100 borrowers in outstanding loans is down to 15% from 18%. Bad loans are at a 12-year low of 2.6%. And the Reserve Bank of India mandates Indian lenders hold a 2.5% buffer above the 9% minimum capital requirement under Basel III norms. It tightened the screws on unsecured loans in November 2023 to curb excessive risk-taking.

Macroeconomic disruption could mess with that. An RBI stress test revealed that in an extreme scenario where GDP growth slows to around 3% and inflation rises to 7.8%, four banks may breach the minimum capital requirement of 9%.

Mid-sized private banks are prone to that risk. In 2020, Yes Bank’s YESB.NS rivals rescued it from near-failure with cash infusions and months later, Singapore's DBS DBSM.SI acquired another capital-starved lender based in southern India. That’s making markets jittery about private lenders like RBL RATB.NS and IndusInd Bank INBK.NS which specialise in microloans of under $500, the segment where the stress is deepest. The finance chief of IndusInd, which reported surging provisions and a profit drop in the September quarter, resigned on Friday.

So far the risk is limited to only a slice of loans -- unsecured loans account for a quarter of total bank credit. To contain it, banks are easing off on new lending. That in turn could slow GDP growth further. It’s a feedback loop India can ill afford.

Follow @ShritamaBose on X

CONTEXT NEWS

HDFC Bank on Jan. 22 reported consolidated net profit of $2.04 billion for the three months to Dec. 31, 2% higher than in the same period a year earlier. The bank’s gross non-performing asset ratio rose six basis points from the end of September to 1.42%.

IndusInd Bank on Jan. 18 said Chief Financial Officer Gobind Jain resigned from the position on the previous day to pursue other professional opportunities.

(Editing by Antony Currie and Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/
[email protected]))

** Indusind Bank INBK.NS falls 2.1% to 950 rupees

** Private lender's chief financial officer Gobind Jain resigned to pursue other opportunities

** Arun Khurana, deputy CEO, will take additional charge as CFO, bank says

** A CFO resigning ahead of the quarter (results) usually is unlikely to be taken well by the markets, Suresh Ganapathy, head of financial services research at Macquarie Capital says

** INBK fell ~40% in 2024, while the banking index .NSEBANK rose 5.3%

(Reporting by Sethuraman NR)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

Jan 17 (Reuters) - Indusind Bank Ltd INBK.NS:

• FINED 70.9 MILLION RUPEES BY TAX TRIBUNAL

Source text: ID:nBSE8WY6q3

Further company coverage: INBK.NS

(([email protected];))

** Shares of IndusInd Bank INBK.NS rise 3% to 967.4 rupees; on track for best day since June 5, if trend holds

** Stock top gainer on benchmark Nifty 50 index .NSEI, which is down 0.57%

** The lender's Dec. shareholding pattern shows foreign room has increased above 25%, which will lead to weight up event in the INBK's MSCI Feb. 25 review, as per NSE data

** The weight increase could attract inflows of about $250 mln to $300 mln, analysts at Nuvama Alternative Research say

** IIFL estimates inflows of about $225 mln into INBK due to weight increase

** 40 analysts covering the stock on avg have a "buy" rating; median PT is 1,397 rupees - data compiled by LSEG

** Stock shed ~40% in 2024 vs an 8.8% rise in .NSEI

(Reporting by Ashna Teresa Britto in Bengaluru)

(([email protected] ; ( +91 8078332441))

** IndusInd Bank INBK.NS falls 2.6% to 956 rupees; among top pct losers on Nifty 50 .NSEI, which is up 0.2%

** Goldman Sachs downgrades to "neutral" from "buy"; cuts TP by 17% to 1,090 rupees, implying 14% upside from current price

** Stock rated "buy" on avg; median TP is 1,410 rupees - LSEG

** GS expects co to take further hits from rising defaults in commercial retail portfolio

** Says slower loan growth, in line with sector peers, will hit profitability

** Adds co's post-Q3 earnings trajectory has limited visibility

** INBK tugs private banks .NIFPVTBNK 0.3% lower; top pct loser on sub-index

** Stock loses 1% YTD after plunging ~40% in 2024

(Reporting by Hritam Mukherjee in Bengaluru)

(([email protected];))

** Shares of IndusInd Bank INBK.NS drops 1%, extending its yearly losses to ~40%, set for its worst year since 2020

** INBK also worst performing stock on benchmark Nifty 50 .NSEI which is up 8.5% for the year

** Stock meltdown since Oct 24 when lender reported a surprise fall in Q2 profit and gave tepid FY loan growth forecast

** At least five analysts have downgraded INBK since then, with number of analysts rating INBK "buy" or higher at 30 - the lowest in ~2 years, per LSEG data

** INBK also top yearly loser on Nifty private bank index .NIFPVTBNK, which is up ~11% so far in 2024

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

Dec 27 (Reuters) - Indusind Bank Ltd INBK.NS:

• HAS INVITED BIDS THROUGH PUBLIC AUCTION FOR ASSIGNMENT OF STRESSED LOANS IN MICROFINANCE

Source text: ID:nBSE2Bp0lz

Further company coverage: INBK.NS

(([email protected];))

Dec 20 (Reuters) - Indusind Bank Ltd INBK.NS:

• RBI: IMPOSES MONETARY PENALTY OF 2.7 MILLION RUPEES ON INDUSIND BANK

Source text: [ID:]

Further company coverage: INBK.NS

(([email protected];))

** IndusInd Bank INBK.NS set for its sixth straight week of losses, its longest weekly losing streak since early 2020

** INBK down 1.3% at 985.30 rupees in day's session

** INBK is among 10 stocks on the 12-member Nifty Banks index .NSEBANK rated "buy" - data compiled by LSEG

** INBK has gained in just one out of the last 12 weeks

** Stock down ~38% YTD vs 11% gain in NSEBANK

(Reporting by Vijay Malkar)

(([email protected];))

Dec 4 (Reuters) - Nureca Ltd NURE.NS:

• ACQUIRED SHARES OF INDUSIND BANK WORTH 15 MILLION RUPEES

Source text: ID:nBSE5BC2L4

Further company coverage: INBK.NS

(([email protected];;))

By Siddhi Nayak

MUMBAI, Nov 8 (Reuters) - Indian lenders are bracing for another wave of defaults in their microfinance portfolios in the second half of the fiscal year after the banking regulator recently further tightened rules for such loans, four bankers said.

The default rates in microfinance loans -- collateral-free loans to those with annual income of up to 300,000 rupees ($3,556) -- had already jumped, as evidenced in the July-September results of IndusInd Bank INBK.NS, Kotak Mahindra Bank KTKM.NS, RBL Bank RATB.NS and Bandhan Bank BANH.NS.

The Reserve Bank of India (RBI), both the central bank and banking regulator, has previously publicly flagged unfair practices in the sector, including "usurious" interest rates and "unreasonably high" processing fees.

Last month, in its latest move, the RBI asked lenders to stop issuing new microfinance loans to borrowers unless they have cleared previous loans, three of the bankers said.

This, however, was conveyed informally, the bankers said, and could lead to cascading defaults as some borrowers will fail to repay dues without fresh credit. Banks offered such "netting off" of loans since many borrowers don't have a steady source of income, one banker said.

The RBI did not respond to an email from Reuters. Three bankers declined to be identified as they are not authorised to speak to the media.

Now, as the cessation of the netting-off impact starts playing out, loan installments will start spiraling and the stress in the sector should continue this quarter, said Venkatesh M, managing director of IIFL Samasta Finance.

"We are still not out of it."

The impact could last even longer, according to Gaurav Dua, senior vice-president and head of capital market strategy at Sharekhan by BNP Paribas.

"As regulations become stricter, stress will creep up and be prolonged. We think that this could play out for the next 4-6 months," Dua said.

Banks and non-bank lenders compete in the microfinance market, which has led to rapid growth in the availability of such credit. The total outstanding of such loans jumped by 18.3% on-year as of June-end, per latest data from industry body MFIN.

The RBI's instruction to stop netting off, one banker said, was to prevent evergreening loans -- in which banks extend new credit to borrowers unable to repay an existing loan, thereby concealing the true status of non-performing assets (NPAs) or bad loans.

($1 = 84.3680 Indian rupees)

(Reporting by Siddhi Nayak; Editing by Savio D'Souza)

(([email protected]; +91 22 6921 7848; Reuters Messaging: X: https://twitter.com/siddhiVnayak))