IndusInd Bank Share Price: The share price of the BSE 100 stock IndusInd Bank rose by nearly 6 per cent on Monday, April 27, following the positive quarterly results announced by the company last week.
As of 11:20 am, the stock price of the private lender was up 3.7 per cent, or Rs 31.25, to trade at Rs 879.55. Earlier in the session, the price touched a high of Rs 899.15, reflecting an upside of 6 per cent from the previous close of Rs 848.30. (IndusInd Bank Share Price)
However, advances declined by nearly 8.5 per cent, compared to around 16 per cent growth in the overall industry. Deposits also fell by 2.66 per cent, whereas the banking system recorded growth of approximately 13.5 per cent.
Brokerage on IndusInd Bank
HDFC Securities maintains ‘Reduce’ rating
Following the results, HDFC Securities reviewed the stock and revised its outlook. The brokerage has maintained a “Reduce” rating on IndusInd Bank and lowered its target price to Rs 760, indicating a potential downside of nearly 14 per cent from the current level. (IndusInd Bank Share Price Target)
The brokerage noted that recent earnings were supported by lower provisioning, while the bank’s core performance remained weak. Continued de-growth in the loan book and weak deposit traction indicate pressure on overall business growth.
Although CASA (Current Account Savings Account) has shown some improvement, the bank’s overall franchise still appears weak.
Outlook on IndusInd Bank remains cautious
Analysts expect recovery in growth to remain slow, and improvement in return on assets (RoA) may take longer than anticipated. The valuation reflects subdued return ratios, with the stock trading at around 0.8 times its March 2028 ABVPS.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
