Brokerages including HDFC Securities Nuvama Securities and IIFL Securities have downgraded IndusInd Bank shares following the bank’s disclosure of fresh fraud incidents and severe financial losses in its fourth quarter review for fiscal 2025. The bank posted a net loss exceeding ₹2,300 crore factoring in all accumulated discrepancies from the fiscal year according to its financial statements.

This marks the worst quarter for IndusInd in recent years intensifying concerns about its governance and risk management. According to HDFC Securities analyst report IndusInd Bank has betrayed stakeholder trust repeatedly through ongoing misgovernance. The bank was severely impacted by the IL&FS crisis in 2018 and the pandemic in 2020 and recent accounting lapses have further deteriorated its credibility.

HDFC Securities highlighted that the bank operates akin to an NBFC and is among the worst in compliance standards suggesting a need for a complete overhaul that could take years to restore confidence.

Despite these negative disclosures IndusInd’s stock closed 1.82 percent higher at ₹785.10 on the BSE on Thursday. The bank announced it is taking disciplinary action against employees involved in the fraud and is hopeful about new leadership to navigate through the crisis. Ashok P Hinduja Chairperson and promoter of IndusInd International Holdings expressed his unequivocal trust in the bank’s Chairman and Board of Directors praising their swift actions to address the issues. He added that the regulator is handling the matter in an orderly manner.

In a related development SEBI Chief Tuhin Kanta Pandey stated that the regulator is actively looking into any egregious violations connected to the fraud and lapses reported by the bank.

The combined effect of these disclosures and ongoing regulatory scrutiny has led brokerages to recommend investors reduce or exit their holdings in IndusInd Bank due to heightened risks and governance concerns.

Investors are advised to monitor further updates on regulatory actions management changes and the bank’s recovery strategy before making investment decisions

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The Current active IPO are Unified Data - Tech Solutions, Dar Credit and Capital, Belrise Industries.

The Closed IPOs are Borana Weaves.