IndusInd Bank likely to continue underperforming industry peers

Valuations reasonable but analysts have raised questions on bank's asset quality performance

It’s been nearly six months since the IL&FS saga unfolded, in October last year. However, the bitter impact of the fiasco is still lingering on IndusInd Bank. The bank’s stock is trading 19 per cent lower than its October levels, and analysts expect it to remain under pressure for a while. 

First, the quantum of exposure that totals Rs 3,000 crore — less than 3 per cent of the bank’s total loan asset as on December 31, 2018 (Q3) — isn’t demanding. 

Further, the loan remains a standard account for IndusInd Bank, and the provisioning is more a prudent step to maintain