Neutral IndusInd Bank; target of Rs 800: Motilal Oswal

Motilal Oswal recommended Neutral rating on IndusInd Bank with a target price of Rs 800 in its research report dated October 19, 2025.

Broker Research

October 24, 2025 / 11:44 IST

Neutral

26 Aug, 2025 12:21

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Motilal Oswal's research report on IndusInd Bank

IndusInd Bank (IIB) reported 2QFY26 loss of ~INR4.4b (vs. our estimated profit of INR3.1b), owing to accelerated provisions on MFI and write-offs. NII declined 18% YoY to INR44.1b (in line). NIMs stood at 3.32% (down 14bp QoQ /76bp YoY). Other income fell 24% YoY to INR16.5b (13% miss). Operating expenses grew 2% YoY/5% QoQ to INR40.1b (8% lower than MOFSLe). Loan book declined by 2% QoQ (down 9% YoY), while deposits declined by 2% QoQ (down 5.5% YoY). Fresh slippages were INR25.4b vs. INR25.7b in 1QFY26. GNPA/NNPA ratios improved by 4bp/8bp QoQ to 3.6%/1.04%. PCR improved 163bp QoQ to 71.8%. We cut our earnings estimates by 20% for FY27 and project IIB’s RoA/RoE at 0.7%/5.8% for FY27. Retain Neutral with a TP of INR800 (premised on 0.9x FY27E ABV).

Outlook

We cut our earnings estimates by 20% for FY27 and project IIB’s RoA/RoE at 0.7%/5.8% for FY27. Retain Neutral with a TP of INR800 (premised on 0.9x FY27E ABV).

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