CLSA has retained a ‘Hold’ rating on IndusInd Bank, setting a target price of ₹725, following a sharp Q1FY26 miss. The bank reported a net profit of ₹680 crore, significantly below CLSA’s estimate of ₹850 crore, citing lower core pre-provision operating profit (PPoP) and higher-than-expected credit costs as key reasons.
The brokerage noted that core NIMs declined 12 bps QoQ, which was broadly in line with peers in the private banking space. Another concern was the 3% sequential decline in both loan and deposit books, primarily led by weakness in the wholesale segment.
Management remains focused on stabilizing operations, CLSA said, adding that the board has already submitted nominations for the MD & CEO post to the RBI, and is currently awaiting approval. “Clarity on top leadership and a rebound in loan growth will be critical near-term catalysts,” the report stated.
