Shares of troubled private lender IndusInd Bank Ltd traded flat on Monday, July 7, after reporting its business update for the first quarter of FY2026.
As of June 30, 2025, IndusInd Bank's net advances stood at Rs 3,34,477 crore, reflecting a decline of 3.9 percent year-on-year from Rs 3,47,898 crore and 3.1 percent quarter-on-quarter from Rs 3,45,019 crore.
Deposits were recorded at Rs 3,97,233 crore, down 0.3 percent from Rs 3,98,513 crore, recorded during the same period last year and 3.3 percent sequentially. The CASA ratio also moderated to 31.49 percent, compared to 36.67 percent in June 2024 and 32.81 percent in March 2025.
In an exchange filing, the bank said, "The net advances for Corporate Banking declined by 14.4 percent YoY and 6.2 percent QoQ and Consumer businesses increased by 4.8 percent YoY with sequential decline of 0.9 percent."
Further, the retail deposits and deposits from small business customers amounted to Rs 1,84,709 crore as of June 30, 2025 as compared to Rs 1,85,133 crore as of March 31, 2025. Further, the daily average LCR for Q1FY26 was at 141.27 percent and 145.26 percent as at June 30, 2025.
International brokerage Morgan Stanley maintained its 'underweight' call on the bank, with a target price of Rs 750 per share. The consumer loans decline was relatively lower at one percent quarter-on-quarter, compared to a two percent growth last quarter. The brokerage added that the moderating share of high-margin loans, coupled with the uncertainty around the new CEO is keeping it 'underweight'.
Global broking house Jefferies reiterated its 'buy' call, with a price target of Rs 920 apiece. The firm's deposits were down three percent sequentially, and retail deposits were flat QoQ, which reflects limited outflows. Further, Jefferies noted that India Ratings has removed its ratings watch with negative outlook, which should likely be appreciated by the market.
At 9.20 a.m., shares of the bank were quoting Rs 853.45, lower by 0.3 percent.
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