IndusInd Bank Shares in Focus as It Plans Confidence Capital Raise

On Friday, the IndusInd Bank share price rose by 1.77%, touching a day’s high price of Rs 844.01 on NSE after it unveiled a major capital raising plan aimed at improving its financial position and supporting future growth initiatives, even as it reported one of its weakest quarterly financial performances in years for Q2 FY26, as per multiple sources.

Fundraising Plans

According to The Economic Times, IndusInd Bank is in the early stages of assessing investor interest for a potential qualified institutional placement (QIP) as a confidence capital-raising measure. Senior management has begun meeting potential investors to reassure them that the bank is making every effort to clean up its book following accounting discrepancies in forex derivatives, which prompted the exit of several senior executives. 

One of the sources said, "The bank is well capitalised. It has also cleaned up its book. If at all, it may be considering raising confidence capital from investors." The bank is reportedly in talks with banks such as Citibank to identify investors for the proposed capital mobilisation. However, IndusInd Bank has categorically denied having such discussions and described the ET query as speculative and factually inaccurate.

The recent exchange filing revealed that IndusInd Bank met 13 institutional investors at the Morgan Stanley Twenty-Fourth Annual Asia Pacific Summit held in Singapore on 20th November 2025.

Latest Q2 FY26 Financials

IndusInd Bank reported a net loss of Rs 436.88 crore for Q2 FY26, an extraordinary reversal from a net profit of Rs 1,331 crore in Q2 FY25 and Rs 604 crore in Q1 FY26. The loss was driven by a sharp rise in provisions and write-offs, particularly in the microfinance book, which management described as a prudent move to strengthen the balance sheet and expedite a return to underlying profitability.

Key income metrics also softened such as Total income fell 10.8% year-on-year to Rs 13,259.91 crore. Net interest income (NII) contracted 18% YoY to Rs 4,409 crore, and net interest margin slumped by 76 basis points to 3.32%. Other income dropped 24% to Rs 1,651 crore. Provisions and contingencies surged 45% to Rs 2,631 crore, compared with Rs 1,820 crore in the prior year, underscoring the bank’s approach to asset quality amidst sectoral headwinds.

Sectoral Trends

Despite these operational challenges, the bank continues to highlight robust capital adequacy and liquidity metrics, laying the groundwork for a turnaround as it fast-tracks portfolio clean-up and resets growth priorities. The share price responded moderately positively to the fundraising announcement, indicating investor faith in IndusInd Bank's recapitalisation strategy and its commitment to restoring profitability.