Buy IndusInd Bank; target of Rs 1200: Motilal Oswal

Motilal Oswal is bullish on IndusInd Bank has recommended buy rating on the stock with a target price of Rs 1200 in its research report dated January 31, 2025.

Broker Research

February 03, 2025 / 22:00 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on IndusInd Bank

IndusInd Bank (IIB)’s PAT declined 39% YoY/rose 5% QoQ to ~INR14b (in line), as NII and NIM were broadly in line, while provisions continued to remain high. NII declined 2.2% QoQ to INR52.3b (in line), while NIM contracted by another 15bp QoQ to 3.93% (in line). Loan books grew 12% YoY (2.7% QoQ), led by corporate and commercial books, while the VF business has started showing some improvement with robust disbursements. The MFI book dipped 0.5% QoQ. Deposits grew 11% YoY (down 0.7% QoQ), amid the outflow of CA deposits.

Outlook

We cut our earnings estimates by 2.8%/1.7% for FY25/26, leading to an RoA/RoE of 1.4%/12% by FY26. Reiterate BUY with a TP of INR1,200 (premised on 1.2x Sep’26E ABV). The RBI’s approval for a fresh term for the MD and CEO remains a key near-term monitorable.

For all recommendations report, click here