Motilal Oswal Stays 'Neutral' On IndusInd Bank — Here's Why

Clarity on the appointment of the new CEO and the strategic direction under their leadership will be key to providing better visibility on IndusInd Bank’s growth outlook and overall strategy..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.IndusInd Bank Ltd. has witnessed a steep decline in operating performance due to asset quality issues and accounting discrepancies. While the bank has recognized the due impact from these abnormalities, near-term pressure on margins and elevated provisioning are likely to continue suppressing RoA recovery in the near term. The bank also utilized its contingent buffer during Q4 FY25, while the upcoming implementation of ECL could add to credit cost pressures in the coming years. On a positive note, the names of three seasoned private sector bankers have been submitted to the RBI for consideration. Clarity on the appointment of the new CEO and the strategic direction under their leadership will be key to providing better visibility on the bank’s growth outlook and overall strategy. Given ongoing uncertainties and continued softness in operating performance, we reiterate our Neutral rating. However, we take off the bear case multiples previously attributed to the stock due to heightened irregularities and lack of confidence in the reported numbers, even as our earnings estimates broadly remain unchanged. We revise our target price to Rs 800 (vs Rs 650 earlier) based on 0.9x FY27E adjusted book value..Click on the attachment to read the full report:.HDFC Bank, ICICI Bank, SBI — Top Stock Picks By Motilal Oswal; Banks Q1 Results Preview.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal Stays 'Neutral' On IndusInd Bank — Here's Why

Motilal Oswal hikes target price for IndusInd Bank based on 0.9x FY27E adjusted book value.

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