IndusInd Bank’s stock price is in focus after BoFA Securities downgraded the stock to ‘underperform’ and cut its target price to ₹850, implying a 9.09% downside from the current market price (CMP) of ₹935.00.
The brokerage highlights concerns over RBI approving only a one-year extension for IndusInd Bank’s CEO, instead of the usual three-year tenure. BoFA Securities warns that it may take 12-18 months to get clarity on the bank’s future leadership and strategic direction. The downgrade is based on a target multiple of 0.9x P/B, applying a 30% discount, with low re-rating potential until leadership uncertainty is resolved.
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