India's IndusInd Bank drops after record quarterly loss on suspected employee fraud
May 22 (Reuters) - Shares of India's IndusInd Bank (INBK.NS), opens new tab fell as much as 4.3% on Thursday, a day after the private lender posted its largest-ever quarterly loss and said it suspects fraud by some employees led to accounting lapses, hurting its earnings.
The stock was the top percentage loser on the benchmark Nifty 50 (.NSEI), opens new tab and the banks index (.NSEBANK), opens new tab.
The lender's net interest income dropped in the March quarter as it adjusted for accounting lapses across its derivatives book and microfinance portfolio.
At least five brokerages downgraded the stock since the results, while 10 slashed their price targets, taking the median price target to 787.50 rupees from 850 rupees last month, as per data compiled by LSEG.
HSBC downgraded the stock by two notches to "reduce" from "buy".
"There is no clarity on new management team, how they gain investor confidence, improve profitability and importantly, whether they will execute better than peers," HSBC said.
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