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IndusInd Bank Shares In Focus As IDBI Capital Upgrades Rating To Buy After Q1 Recovery — Check Target Price

Improving traction in retail, SME and rural businesses, along with a stronger liability franchise, is expected to support sustainable loan growth and profitability, adds the brokerage.

IndusInd Bank Shares In Focus As IDBI Capital Upgrades Rating To Buy After Q1 Recovery — Check Target Price
With CET-1 of 16.1% and CRAR of 17.15%, IndusInd Bank remains well capitalised to support growth, says IDBI Capital.
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IndusInd Bank Ltd.
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IDBI Capital Report

The brokerage firm IDBI Capital has upgraded its rating to 'Buy' from 'Hold' on IndusInd Bank Ltd. after the bank announced its earning for June-quarter, with a target price of Rs 1,230, valuing the bank at 1.33 times FY28E adjusted price/book-value.

According to the brokerage, IndusInd Bank reported an encouraging Q1 FY27, marking a transition from balance sheet repair to a growth phase.

Management indicated that portfolio recalibration is largely complete and will now focus on sustainable, risk-adjusted growth, strengthening the liability franchise and leveraging AI-led efficiencies. Advances grew ~3% QoQ to Rs 3.26 lakh crore, led by wholesale banking, while deposits rose ~4% QoQ to Rs 4.15 lakh crore, with retail deposit share improving to 49.5%.

Asset quality strengthened, with GNPA/NNPA improving to 3.25%/0.95%. Profitability recovered sharply as NII grew ~7% QoQ to Rs 4,685 crore, PPOP increased ~21% QoQ to Rs 2,683 crore, and PAT surged ~88% QoQ to Rs 1,003 crore, aided by lower provisions and operating leverage.

Normalised NIM remained stable at 3.35%, while annualised RoA improved to 0.78%, with management targeting 1% RoA.

With CET-1 of 16.1% and CRAR of 17.15%, the bank remains well capitalised to support growth.

Click on the attachment to read the full report:

Idbi Capital Indusind Bank Q1 Review.pdf
VIEW DOCUMENT

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