IndusInd Bank + Bharat Financial Inclusion

Stock Opportunities
90

Was It Just a Hedging Cost Issue or Something Bigger?

The official reason given is miscalculation of forex hedging costs, but the real issue could be deeper.
Possibilities include:

  • Speculative forex trading instead of pure hedging.
  • Naked forex positions that were not covered properly.
  • Mismatch in short-term and long-term hedges leading to unexpected costs.
  • Delay in recognizing losses to make financials look better.
  • Clients defaulting on forex contracts, making IndusInd bear losses.
    The sudden impact suggests a long-standing issue that has now exploded.
91

IndusInd Bank: Insider & FII Selling vs. DII Buying – A Curious Case

Trendlyne Data (June 2023 - June 2024)

  • CEO Sumant Kathpalia: Sold nearly all his shares at an average price of ₹1,437, totaling ₹118 crore.
  • Deputy CEO Arun Khurana: Also dumped almost his entire stake at an average price of ₹1,451, worth ₹70 crore.
  • Both executives consistently offloaded shares through multiple open-market transactions over the year.

Trendlyne Data (March 2024 - December 2024)

  • FIIs (Foreign Investors): Held 40.3% in March 2024, but aggressively sold down to 24.7% by December 2024. (Most likely, they sold even more in Jan/Feb 2025.)
  • DIIs (Domestic Institutions): On the other hand, gobbled up shares like there’s no tomorrow!
    • Their stake jumped from 28.6% in March 2024 to 42.8% by December 2024 (probably even higher now).

The Big Picture
While top insiders & FIIs were rushing for the exit, DIIs kept buying relentlessly, absorbing tens of thousands of crores in just this one stock.

Promoters barely hold 16%, while DIIs may now own nearly 50% of this “problematic” bank.
And guess what? They might have even bought today—while FIIs offloaded more! :grimacing:

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94

RBI on IndusInd Bank.

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