Jefferies has reiterated its Buy rating on IndusInd Bank with a target price of ₹920, indicating a potential upside of 7.7% from the current market price of ₹854.50. Despite a decline in loan growth, the brokerage believes the stock remains attractive due to supportive factors like stable retail deposits and a recent credit rating reaffirmation.
In Q1FY26, IndusInd Bank’s loan book contracted 4% year-on-year and 3% quarter-on-quarter, largely due to a 14% drop in the corporate banking portfolio. While the consumer business posted a 5% YoY increase, it saw a 1% sequential decline. Deposits also fell 3% QoQ, but importantly, retail deposits were flat, signalling minimal outflows—a factor Jefferies believes may be viewed positively by the market.
In a further boost to sentiment, India Ratings removed its negative watch and reaffirmed the bank’s AA+ credit rating. Jefferies noted that this move reflects improved credit confidence and could support near-term investor sentiment.
Disclaimer: The views expressed above are those of Jefferies and do not constitute investment advice. This article is for informational purposes only.
