IndusInd Bank shares fall 20% after Q2 profit drop, asset quality deterioration

[dvader]

Your post raises strong concerns about IndusInd Bank, but I’d like to dig deeper into your perspective. Let’s unpack this:

1. CEO Removal as a “Message”: You suggest firing the CEO regardless of merit to signal change. But if the C-suite is truly incompetent, wouldn’t the board need specific justification (beyond symbolism) to avoid worsening governance issues? How does removing a CEO—without evaluating their actual performance—align with improving governance? Could this risk further instability?

2. Regulatory Role: You highlight transparency gaps in “non-regulated segments” and governance failures. Why do you think the RBI hasn’t intervened if these issues are systemic? Are there specific lapses you’re referencing (e.g., disclosures, capital adequacy), or is this more about the bank’s internal culture?

3. Unregulated Segments: What exactly are these segments? IndusInd operates largely as a regulated entity under RBI oversight. Are you suggesting they’re operating in unregulated areas?

4. C-Suite Competency: How did you assess the executives’ incompetence? Is this about strategic missteps, ethical concerns, or something else?

Your critique has valid undertones, but hyperbole like “stuck in the 2000s” or symbolic CEO firings risks oversimplifying complex issues. IndusInd’s challenges likely demand structural reforms—not just leadership theatrics. What’s your vision for practical steps the board could take beyond a CEO shakeup?

Looking forward to your thoughts!

PS: If you have insider insights or documents pointing to these issues, sharing them (anonymously?) could spark a more actionable discussion.

PPS: I’m still pondering what you mean by “don't want them to become IDFC/HDFC either.”

I will keep it short,
1. All this happened on the CEO's watch. If he knew what was going on, he would be a bad guy and should be out; if he didn't, he would be incompetent and should be out anyway. RBI also wants this CEO out and has been trying to get rid of him since his first extension. IndusInd's Boards is keeping him because RBI has been trying to get an external CEO and they are, for some reason, uncomfortable with it.
2. IndusInd is not just a bank. They are part of IndusInd International Holding Ltd, they recently completed the acquisition of Reliance Capital. IndusInd works in international investment, they invest money (this is independent of any client or retail deposit). This is the unregulated segment I am talking about. As soon as RBI bought new regulations, IndusInd complied and would move such investments to other subsidiaries. These issues are not systemic, but RBI being an excellent regulator is avoiding even the slightest of irregularities with commercial banks. Note: All banks make such investments, IndusInd happens to make an accounting error and ruined it for everyone else.
3. Explained in point 2
4. The CFO resigned last year, and RBI is trying to get rid of its CEO. While all this is happening, we get the internal audit report. That's gross and borderline criminal incompetence. I don't assess Competency, as long as the C-Suit manages to stay out of these controversies that's good enough.

IDFC: They went with tech first approach. Their process are so strict even the branch personnel have very little to no leeway in banking processes. Now for some this is good but it's not my taste.

HDFC: They have become too big, basically a sarkari bank.

IndusInd, RBL, YesBank etc are your middle-of-the-road banks. IndusInd in particular has been really good if you can go around it's quirks.

 

[KGSIPO]

I will keep it short,
1. All this happened on the CEO's watch. If he knew what was going on, he would be a bad guy and should be out; if he didn't, he would be incompetent and should be out anyway. RBI also wants this CEO out and has been trying to get rid of him since his first extension. IndusInd's Boards is keeping him because RBI has been trying to get an external CEO and they are, for some reason, uncomfortable with it.
2. IndusInd is not just a bank. They are part of IndusInd International Holding Ltd, they recently completed the acquisition of Reliance Capital. IndusInd works in international investment, they invest money (this is independent of any client or retail deposit). This is the unregulated segment I am talking about. As soon as RBI bought new regulations, IndusInd complied and would move such investments to other subsidiaries. These issues are not systemic, but RBI being an excellent regulator is avoiding even the slightest of irregularities with commercial banks. Note: All banks make such investments, IndusInd happens to make an accounting error and ruined it for everyone else.
3. Explained in point 2
4. The CFO resigned last year, and RBI is trying to get rid of its CEO. While all this is happening, we get the internal audit report. That's gross and borderline criminal incompetence. I don't assess Competency, as long as the C-Suit manages to stay out of these controversies that's good enough.

IDFC: They went with tech first approach. Their process are so strict even the branch personnel have very little to no leeway in banking processes. Now for some this is good but it's not my taste.

HDFC: They have become too big, basically a sarkari bank.

IndusInd, RBL, YesBank etc are your middle-of-the-road banks. IndusInd in particular has been really good if you can go around it's quirks.

Indusind bank should hire you as a customer relationship manager after seeing all your write-up in Techfino

 

[dvader]

Indusind bank should hire you as a customer relationship manager after seeing all your write-up in Techfino

Haha, this is more of a write up on RBI. RBI should hire me 😂. Jokes apart, I suported my colleagues during yesbank fiasco too. During that time, I went in so far as to get a CC with them, got Yes First Ex (Reserv now) LTF, got a zero balance account, a yes First account. Whenever a comercial bank has troubles, it's the best time to get their products.

 

[EnthuCC]

I suported my colleagues during yesbank fiasco too.

Are you a banker?

 

[dvader]

Are you a banker?

Nope, with support i meant, I knew RBI wont and cant let yesbank fail. Commercial banks CANNOT fail. I took (3 months) post dated cheques with a few thousand extra as a goodwill gesture on their end (upto them) and gave them cash. Asked them to register positive pay when time came and cashed it. There was one issue with signature mismatch but at that time, he just paid me back online.

 

[Tarun239]

Nope, with support i meant, I knew RBI wont and cant let yesbank fail. Commercial banks CANNOT fail. I took (3 months) post dated cheques with a few thousand extra as a goodwill gesture on their end (upto them) and gave them cash. Asked them to register positive pay when time came and cashed it. There was one issue with signature mismatch but at that time, he just paid me back online.

What is ur current assessment about indusind bank? I am bit scared right now, their poor tech, poor app, poor customer support is making matters worse, would like to know ur honest opinion on these matters as well.

 

[dvader]

What is ur current assessment about indusind bank? I am bit scared right now, their poor tech, poor app, poor customer support is making matters worse, would like to know ur honest opinion on these matters as well.

Instead of poor, I would say average compared to the IT of other top banks. I mean it's better than most PSU, SFBs, and Private banks but it falls way short when compared to banks like HDFC, ICICI, IDFC, etc, and evidently so. And I don't mind that as long as the products are solid which they are. I have multiple IndusInd accounts (family) to distribute the corpus and avoid any risk. All you need to do is reduce your exposure that's all.

FAQs

1. Will IndusInd fail? NO NOT A CHANCE.
2. What will happen if it fails hypothetically? Your money won't be safe in other banks either at that point.
3. But what about the YesBank fiasco? You are proving my point, not a single person lost a single Rupee of deposit money, and it was a worse disaster.
4. What should I do? Just reduce your a/c bal exposure and keep around 4L balance in each account not more than that.

 

[KGSIPO]

Instead of poor, I would say average compared to the IT of other top banks. I mean it's better than most PSU, SFBs, and Private banks but it falls way short when compared to banks like HDFC, ICICI, IDFC, etc, and evidently so. And I don't mind that as long as the products are solid which they are. I have multiple IndusInd accounts (family) to distribute the corpus and avoid any risk. All you need to do is reduce your exposure that's all.

FAQs

1. Will IndusInd fail? NO NOT A CHANCE.
2. What will happen if it fails hypothetically? Your money won't be safe in other banks either at that point.
3. But what about the YesBank fiasco? You are proving my point, not a single person lost a single Rupee of deposit money, and it was a worse disaster.
4. What should I do? Just reduce your a/c bal exposure and keep around 4L balance in each account not more than that.

Our brother hard core supporter dvader also requesting to limit your exposure not more than 4 lakhs in Indusind bank but the people asking questions the safety of Indusind bank have much more exposure ( May be more than 50 lakhs)

 

[dvader]

Our brother hard core supporter dvader also requesting to limit your exposure not more than 4 lakhs in Indusind bank but the people asking questions the safety of Indusind bank have much more exposure ( May be more than 50 lakhs)

4L per account/PAN, I have 7-8 account in family. And no matter what happens Don't keep 50L in one account for any bank even if it's a Swiss bank (Credit Suisse failed last year the biggest investment bank in the world, not that anyone lost their deposit but all investments were wiped out). 20-25L in 4-5 account is the sweet spot at this point.

And I think you don't understand my point so PLEASE READ CAREFULLY. I am not a hardcore Indusind bank supporter, I am a hard core Central Bank supporter (not just RBI, BOJ, USFed, ECB, RBA, PBC, SNB, BoE etc to name a few). I would say this for all Commercial and PSU banks (I might complaint about a bank's IT, customer support or service but it has nothing to do with deposited money). So I would support any Commercial/PSU bank in this situation.

 

[opbamldg]

Instead of poor, I would say average compared to the IT of other top banks. I mean it's better than most PSU, SFBs, and Private banks but it falls way short when compared to banks like HDFC, ICICI, IDFC, etc, and evidently so. And I don't mind that as long as the products are solid which they are. I have multiple IndusInd accounts (family) to distribute the corpus and avoid any risk. All you need to do is reduce your exposure that's all.

FAQs

1. Will IndusInd fail? NO NOT A CHANCE.
2. What will happen if it fails hypothetically? Your money won't be safe in other banks either at that point.
3. But what about the YesBank fiasco? You are proving my point, not a single person lost a single Rupee of deposit money, and it was a worse disaster.
4. What should I do? Just reduce your a/c bal exposure and keep around 4L balance in each account not more than that.

I am thinking of seeing the IndusInd results of this quarter. After that I will visit my nearest branch and ask for a LTF Pioneer Metal with 30 lakh cheque. Let's see how it unfolds.

 

[hender]

I am thinking of seeing the IndusInd results of this quarter. After that I will visit my nearest branch and ask for a LTF Pioneer Metal with 30 lakh cheque. Let's see how it unfolds.

Sure, they will be pleased to 🎉🎉
Welcoming you on board 👑

 

[opbamldg]

Sure, they will be pleased to 🎉🎉
Welcoming you on board 👑

I am already an Exclusive Account Holder with Legend credit card along

 

[hender]

I am already an Exclusive Account Holder with Legend credit card along

Bank welcomes money 🤑 and the person who is bringing in 🎉🎉💐💐🎁🎀

 

[opbamldg]

Bank welcomes money 🤑 and the person who is bringing in 🎉🎉💐💐🎁🎀

But I have a condition of LTF credit card as well.

 

[hender]

But I have a condition of LTF credit card as well.

30 lakhs is a big Negotiator 🫸

 

[La pasión]

Lagte h sara profit cc bill payment ka cashback sai kam hogya h🤣🤣🤣

 

[dvader]

I am thinking of seeing the IndusInd results of this quarter. After that I will visit my nearest branch and ask for a LTF Pioneer Metal with 30 lakh cheque. Let's see how it unfolds.

(at this time) If you are in Metro City 30L should be ok. For tier 2 city you can get away with 20L and for tier 3 10-15L should do the magic as long as it's a pioneer capable branch. Just a heads up about IndusInd's quirks

1. Try to avoid IP cheque and tell them you would prefer Online Funding via RTGS (make up an excuse like signature issue).
Reason: My IP cheque of 10L was stuck for 15 days due to a process pretty unique to IndusInd. Not that they kept the money in their account, but the cheque clearing itself took 15 days. All branches in my city send their cheques to another indusInd branch with less work load. This involves physical transport of cheques within city and there might be delays due to multiple issues. Not a big deal though.

2. While you are at it get add-on accounts for everyone in your family with 10-25K initial deposit. Don't budge on this, tell them you will go to another bank with this cheque and get family account for your entire neighborhood.

3. Ask them to open an extra delight account for you with manual approval (It's possible I have three a/c & again don't budge). If they ask, tell them you need one account for savings and one for UPI for safety. this account comes with a DC with 5% cashback on fuel. You can close if it gets devalued.

4. Get a standard locker LTF. (one time INR 100 stamp paper required, 2 photos for each holder)

5. Get at least one joint account with one of your family member (mother perhaps). For emergencies.

Note: Do not let the bank guys visit your home for ac opening. Go to branch. And avoid any insurance, FDs, any product they offer during a/c opening. Try to get things done via a junior employee (preferebly a girl), everyone should feel that you trust the new guy/gal more. Avoid talking to BM and DBM, focus on the new employee/girl.

This is trust me bro kindda situation, you will thank me later.

 

[hender]

Don't budge on this, tell them you will go to another bank with this cheque and get family account for your entire neighborhood.

3. Ask them to open an extra delight account for you with manual approval (It's possible I have three a/c & again don't budge). If they ask, tell them you need one account for savings and one for UPI for safety. this account comes with a DC with 5% cashback on fuel. You can close if it gets devalued.

4. Get a standard locker LTF. (one time INR 100 stamp paper required, 2 photos for each holder)

5. Get at least one joint account with one of your family member (mother perhaps). For emergencies.

"Quote of the Quarter" 👏

 

[La pasión]

Try to get things done via a junior employee (preferebly a girl), everyone should feel that you trust the new guy/gal more. Avoid talking to BM and DBM, focus on the new employee/girl.

Guy is an ex fbi agent

 

[dvader]

Where do these crorepatis keep their money then? Or big business with crores of liquid fund. A small real estate developer might be having at least 100 Cr in their current account.

I'm already Pioneer customer but I moved out my funds already. They were offering me Pioneer Metal Rs. 15k joining fee +25k renewal fee which would be reversed with annual 10L spends.

Is there any chance to get it LTF now?

What's the rationale behind this strategy? I'm genuinely curious.

Crorepati's dont have current account their businesses do. And you just explained why RBI can't let even a small commercial bank fail, even if indusind's top management scammed 1000 CR tomorrow, RBI will save it no matter what.

Now on personal account,

Self made people rarely keep cash lying around apart from a few crores and that just a few million in their PAN. Rest is smart investment in precious metals, liquid funds, foreign investments etc.

99.99% of people dealing in Indian real estate (for living) or any related businesses are crooks and scum. They don't know the concept called economics, they let their CA handle it if they can manage to keep the things legal or a CA+Lawyer combo if they are not even good at that. So they keep cash, jwellery you know your usual run of the mill stuff.

And the rationale,

Trust me bro. I have thought about multiple ways to express the rationale but each time it sounded a bit sexist so until I can frame it in a politically correct way. TRUST ME BRO