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IndusInd Bank Ltd.
(INDUSINDBK)
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Rating:45Neutral
Price Target:
₹829.00
▼(-2.83% Downside)
Action:Reiterated
Date:10/23/26
The score is held down primarily by weakened recent financial performance (profitability compression and historically volatile cash flows) and bearish technical signals (price below key moving averages with negative MACD). A constructive earnings call with improving growth and asset-quality trends provides partial offset, but valuation remains unattractive given the high P/E and low dividend yield.
Positive Factors
Deposit and loan growth
A return to double-digit deposit and advance growth indicates improving franchise momentum across funding and lending. If sustained, broader balance-sheet expansion can support recurring interest income, improve operating leverage, and strengthen the bank’s competitive position over the next several quarters.
Negative Factors
Profitability deterioration
The sharp decline in margin and return on equity shows that recent balance-sheet activity is generating materially weaker shareholder returns. Sustained earnings pressure could reduce internal capital generation, constrain strategic flexibility, and make the recovery dependent on successful execution of management’s targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Deposit and loan growth
A return to double-digit deposit and advance growth indicates improving franchise momentum across funding and lending. If sustained, broader balance-sheet expansion can support recurring interest income, improve operating leverage, and strengthen the bank’s competitive position over the next several quarters.
Read all positive factors
IndusInd Bank Ltd. (INDUSINDBK) vs. iShares MSCI India ETF (INDA)
Market Cap
₹663.75B
Dividend Yield0.18%
Average Volume (3M)422.58K
Price to Earnings (P/E)22.1
Beta (1Y)1.25
Revenue Growth-2.29%
EPS GrowthN/A
CountryIN
Employees46,778
SectorGeneral
Sector StrengthN/A
IndustryBanks - Regional
Share Statistics
EPS (TTM)38.52
Shares Outstanding779,144,700
10 Day Avg. Volume699,256
30 Day Avg. Volume422,579
Financial Highlights & Ratios
PEG Ratio-1.01
Price to Book (P/B)0.89
Price to Sales (P/S)1.10
P/FCF Ratio53.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,065.00Price Target Upside24.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)58.13
Revenue Forecast (FY)₹271.84B
IndusInd Bank Ltd. Business Overview & Revenue Model
Company Description
IndusInd Bank Limited provides various banking products and financial services to individuals, corporations, government entities, and public sector undertakings in India. It operates in four segments: Treasury, Corporate/Wholesale Banking, Retail ...
How the Company Makes Money
IndusInd Bank primarily makes money through (1) net interest income and (2) non-interest (fee and other) income. Net interest income is earned from the spread between interest received on earning assets (such as retail loans, vehicle/consumer fina...
IndusInd Bank Ltd. Earnings Call Summary
Earnings Call Date:Oct 23, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 22, 2027
Earnings Call Sentiment Positive
The call was strongly constructive overall. The bank reported a return to double-digit deposit and advance growth, materially improved asset quality, lower provisions, higher profitability, expanding retail and wholesale momentum, and healthy capital and liquidity. The main challenges were FCNR-related margin pressure, higher operating and funding costs, weak CASA and unsecured loan trends, potential bancassurance regulation impacts, and identified rural, liquidity and capital-management risks. Management remained confident in achieving its growth and profitability objectives, but several areas require continued execution.Positive Updates
Deposits and Advances Returned to Double-Digit Growth
Deposits grew 10% year over year and advances grew 11% year over year, reversing the decline seen last year. Retail deposits benefited from FCNR (B) mobilization, while asset growth improved across both retail and corporate segments.
Negative Updates
Net Interest Margin Declined
Net interest margin declined to 3.23% from a normalized 3.35% in the previous quarter, a 12-basis-point moderation. Management said FCNR (B) mobilization was the main factor, with the estimated impact described as approximately 7 to 8 basis points.
Read all updates
Q2-2027 Updates
Positive
Negative
Deposits and Advances Returned to Double-Digit Growth
Deposits grew 10% year over year and advances grew 11% year over year, reversing the decline seen last year. Retail deposits benefited from FCNR (B) mobilization, while asset growth improved across both retail and corporate segments.
Read all positive updates
Company Guidance
The bank said it had set an ambition of a 1% exit ROA for this year, expects to add about 100 bank branches in H2, and expects to grow in line with market, with first-half momentum giving confidence it should meet those expectations; recurring ECL is expected to be between 5-6 basis points, pre-tax transition impact is 1.1% of loans, and the bank expects to recoup the 12 basis points NIM decline over the next two quarters. It expects credit cost to asset to further drop, though not at the same scale and proportion seen over the last two, three quarters, expects both CC and PL books to return to growth in the next few quarters, and expects some uptick in deposit rates is likely in the second half of the year. Its medium-term ambition is to reach 175-180 basis points of ROA, while it has no comment on next year.IndusInd Bank Ltd. Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
62
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 529.40B | 534.80B | 562.90B | 545.98B | 442.43B | 378.65B |
| Gross Profit | 215.54B | 172.42B | 266.53B | 294.65B | 254.68B | 220.43B |
| EBITDA | 40.28B | 17.74B | 40.58B | 124.42B | 103.39B | 67.85B |
| Net Income | 30.01B | 8.89B | 25.76B | 89.77B | 74.43B | 48.05B |
Balance Sheet | ||||||
| Total Assets | 5.80T | 5.43T | 5.54T | 5.15T | 4.58T | 4.02T |
| Cash, Cash Equivalents and Short-Term Investments | 629.36B | 489.32B | 593.75B | 369.07B | 567.77B | 685.85B |
| Total Debt | 537.81B | 427.89B | 537.04B | 687.07B | 1.56T | 1.46T |
| Total Liabilities | 5.12T | 4.78T | 4.89T | 4.52T | 4.03T | 3.51T |
| Stockholders Equity | 679.21B | 657.40B | 648.36B | 632.08B | 550.05B | 480.26B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 11.05B | -87.30B | -176.55B | -130.13B | 162.58B |
| Operating Cash Flow | 0.00 | 17.97B | -79.99B | -169.25B | -124.42B | 166.72B |
| Investing Cash Flow | 0.00 | 94.94B | -7.09B | -7.11B | -5.60B | -4.06B |
| Financing Cash Flow | 0.00 | -218.43B | 311.52B | -22.42B | 11.15B | 331.77B |
IndusInd Bank Ltd. Technical Analysis
Negative
853.15
Price Trends
935.11
Negative
957.04
Negative
922.16
Negative
Market Momentum
-26.34
Negative
40.05
Neutral
17.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDUSINDBK, the sentiment is Negative. The current price of 853.15 is below the 20-day moving average (MA) of 866.73, below the 50-day MA of 935.11, and below the 200-day MA of 922.16, indicating a bearish trend. The MACD of -26.34 indicates Negative momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 17.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INDUSINDBK.
IndusInd Bank Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹9.87T | 16.71 | ― | 0.86% | 7.92% | 9.82% | |
71 Outperform | ₹10.58T | 13.17 | ― | 2.26% | 4.59% | 10.08% | |
69 Neutral | ₹4.38T | 20.38 | ― | 0.15% | 12.39% | 17.49% | |
66 Neutral | ₹3.80T | 12.66 | ― | 0.08% | 7.44% | 14.86% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹490.30B | 11.74 | ― | 1.34% | 5.03% | 47.78% | |
45 Neutral | ₹663.75B | 22.09 | ― | 0.18% | -2.29% | ― |
* General Sector Average
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IndusInd Bank Ltd. Corporate Events
IndusInd Bank Receives Independent ESG Rating of 73 from Niche Ninety Nine
Sep 17, 2026
IndusInd Bank has disclosed that Niche Ninety Nine Capability and Certifications (OPC) Private Limited has independently assigned the bank an ESG rating of 73, based solely on publicly available information and its own methodology. The rating, whi...
IndusInd Bank Receives Independent ESG Rating of 68
Sep 9, 2026
IndusInd Bank has disclosed that ESG Risk Assessments and Insights Limited has independently assigned the bank an ESG rating of 68, based solely on publicly available information and ESGRI’s own methodology. The rating, which the bank did no...
CRISIL Upgrades IndusInd Bank Outlook to Stable, Affirms AA+ Ratings
Aug 19, 2026
Credit rating agency CRISIL Ratings Limited has revised the outlook on IndusInd Bank’s long-term debt instruments to Stable from Negative while reaffirming the ratings at AA+, signalling improved confidence in the bank’s credit profile...
IndusInd Bank joins global PCAF initiative to sharpen carbon accounting
Aug 18, 2026
IndusInd Bank has joined the Partnership for Carbon Accounting Financials, a global consortium that standardizes how financial institutions measure and disclose greenhouse gas emissions linked to their lending and investment activities. The move a...
IndusInd Bank Announces Completion of Tenure of Independent Director Akila Krishnakumar
Aug 9, 2026
IndusInd Bank has announced that non-executive independent director Akila Krishnakumar has completed her tenure on the board, with her role ceasing effective August 9, 2026. The board formally recorded its appreciation for her contributions and no...
IndusInd Bank Allots 7,800 Shares Under Employee Stock Option Scheme
Aug 9, 2026
IndusInd Bank Limited has allotted 7,800 equity shares with a face value of Rs.10 each under its Employee Stock Option Scheme to grantees who exercised their options. As a result, the bank’s paid-up share capital increased slightly to Rs. 7,...
IndusInd Bank Sets August 27 AGM, Details Dividend and Capital-Raising Plans
Aug 5, 2026
IndusInd Bank has scheduled its 32nd Annual General Meeting for August 27, 2026, to be conducted via video conferencing, and has circulated the AGM notice and Integrated Annual Report for FY 2025-26 to eligible shareholders electronically. The doc...
IndusInd Bank Publishes FY 2025-26 Business Responsibility and Sustainability Report
Aug 5, 2026
IndusInd Bank has released its Business Responsibility and Sustainability Report (BRSR) for financial year 2025-26, detailing its ESG-related disclosures on a standalone basis and complying with SEBI’s listing and disclosure requirements. Th...
RBI clears appointment of two new Executive Directors at IndusInd Bank
Aug 4, 2026
IndusInd Bank has received approval from the Reserve Bank of India to appoint senior executives Ganesh Sankaran and Jagdeep Mallareddy as Executive Directors for a three-year term from August 4, 2026 to August 3, 2029. The appointments, previously...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.