InvestorQ : I have shares of IndusInd Bank and am wondering whether I should hold or exit the stock as it is falling on a daily basis?
Katherine Gonsalves made post

I have shares of IndusInd Bank and am wondering whether I should hold or exit the stock as it is falling on a daily basis?

Answer
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Rutuja Nigam answered.
7 months ago


IndusInd Bank is already at its lowest level since early 2017 and continues to lose value on a regular basis. In fact, investors lost Rs.15,000 crore as the market capitalisation of the bank fell from Rs.92,536 crore to Rs.77,520 crore in a span of less than 2 weeks. The big trigger in the month of Feb-20 has been the bank’s exposure of Rs.995 crore in the telecom sector, which investors expect to get hit by Vodafone default. In addition, IndusInd also has non-fund exposure as Bank Guarantees of Rs.2409 crore. But this is just the tip of the iceberg. Earlier, IndusInd had shown stress due to its exposure to stocks like Jet Airways, IL&FS, Dewan Housing and Cox & Kings. Now Vodafone is a ticking time bomb for the bank. The latest trigger for the fall came on February 11 when Moody’s downgraded the outlook of IndusInd Bank to negative from stable on account of risk of further asset quality deterioration.