IndusInd Bank shares were the top Nifty loser on July 2 after global brokerage Goldman Sachs cut its rating on the private bank stock to 'sell' and slashed target price by up to 15% from the current levels.
At 9:46 am on July 2, IndusInd Bank shares were trading 3% lower at Rs 852 apiece. The market capitalisation of the stock is Rs 66,300 crore.
Goldman Sachs stated that IndusInd Bank now appears to have a structurally weaker franchise, with Return on Assets (ROAs) expected to reset lower going forward. The brokerage has cut its earnings estimates for the bank, lowering its FY26 and FY27 EPS projections by 25% and 17%, respectively and gave a target price of Rs 722.
The global brokerage also highlighted that even after normalisation of business growth and credit cost trajectory in the second half of FY26 and FY27, the bank is likely to continue reporting a weaker growth profile and subdued return ratios.
Goldman Sachs further expects IndusInd Bank’s valuation to remain below its book value on poor visibility of turnaround.
Meanwhile, IndusInd Bank has shortlisted three senior bankers - Rajiv Anand, Rahul Shukla, and Anup Saha - for the position of CEO and submitted their names to the central bank for approval, two sources told Reuters.
IndusInd Bank took a $230 million hit in the year ended March 31 due to years of misaccounting of internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April.
An internal audit of its microfinance business found about $80 million was incorrectly recorded as interest across three quarters, which it reversed in January.
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