Best Indian Bank Stock for Decade Stutters as Succession Looms

After more than a decade of share price outperformance, the skies have darkened for IndusInd Bank Ltd., as the Indian lender faces challenges from worsening asset quality to a transition to new leadership, Bloomberg News reported. IndusInd has a hefty exposure to India’s troubled telecommunications sector as well as to real estate where several developers are struggling amid the country’s prolonged shadow banking crisis. Further uncertainty stems from a coming leadership change, with Chief Executive Officer Romesh Sobti, 69, due to stand down at the end of March after a dozen years at the helm. “IndusInd was commanding a premium in its share price because of its strong growth without any equity dilution,” said Siddharth Purohit, an analyst at SMC Global Securities Ltd. Read more

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