Why has the Price of the Equity Share of IndusInd Bank reduced so drastically ? Is this Bank also vulnerable to be taken over by RBI ?

IndusInd bank does have some problem on NPAs due to its enhanced exposure to the troubled sectors. Also, in the past, the RBI had pointed to cases of divergence between what IndusInd had reported and the RBI definition. This has led to some kind of fear among the investors that the bank could also be in trouble. That may not be the issue because while the bank has some NPA problems its asset quality has not been so compromised by aggressive banking. To that extent, the stock should be more comfortable. Also, under Sobti, the bank has made big strides on the fund based and non-fund revenue front. You need to factor that in too. I don’t think the situation should arise where it will have to be taken over by the RBI. Also, now the RBI is likely to be a lot tighter in its regulation and banks would also not want to chances after the Yes Bank episode.