Today IndusInd Bank share suffered a massive crash today and it has crashed more than 25%. In the process it has hit the 52 week low along with that it is steepest fall of this share after March 2020. The crash happened because the Bank has disclosed some discrepancies in its accounting. And people think that this discrepancies is nothing but a fraud done by its management. The amount is also not less, it is more than 1000 Crore. So there was 1K Crore of discrepancies in the accounting of IndusInd Bank and that's why it has crashed so much.
PC: Pixabay.com
And this decreases the networth of the Bank by 2.35% which is again not that much but still you never know how many such discrepancies would be there. And that's why people are actually not trusting the IndusInd Bank anymore and thus the crash was so steep. IndusInd is one of the bigger banks in India and it has a potential of going big. But again the Bank has crashed by more than 60% from it's peak and that's why people are actually getting away from this Bank now.
There was a lower circuit on this stock earlier in the morning, but again big players are buying the stock and that's why there was too much volatility observed. There is no problem with the fundamentals of the stock, the stock was doing OK and because of the Indian downtrend it was going down. Now with this discrepancies we might see more Downward movement.
People have started asking whether we should buy the stock at this level or not. I am not buying because we should not catch a falling knife but again until and unless the full enquiry comes I am not thinking about it. I know how the Yes Bank have crashed from Rs 400 to Rs 10 and we don't want a share in our portfolio with 99% down. So it's better to stay away from this stock as of now.
