Despite a challenging quarter, Bernstein has maintained its ‘Outperform’ rating on IndusInd Bank, with a target price of ₹1,000. The brokerage, however, flagged recurring issues that continue to hamper the bank’s performance.
For Q1FY26, IndusInd reported RoA at just 0.5%, while EPS declined 68% YoY. Bernstein emphasized that the weak quarter shows no tangible benefits yet from past clean-up measures, with familiar problems such as asset quality deterioration, lower fee income, and subdued NIMs persisting.
The brokerage cautioned that a lack of near-term levers to improve profitability could prompt a deeper reassessment of the bank’s outlook. “Without a clear roadmap for return improvement, sustaining a bullish view could prove difficult,” Bernstein added.
