CLSA has retained its ‘Hold’ rating on IndusInd Bank and cut its target price to ₹725 following a disappointing Q4FY25, driven by multiple one-offs and structural adjustments in the MFI business.
The bank posted a net loss of ₹2,328.9 crore, due to hits from FX derivatives (₹2,000 crore), MFI interest reversals (₹700 crore), and GNPA additions (~₹1,900 crore). Fee income of ₹170 crore booked in 9MFY25 was reversed in full during Q4.
CLSA noted that on the earnings call, the chairman confirmed RBI had asked for CEO candidate names by June 20. The brokerage cut FY26/27 PAT estimates by 42% and 28%, respectively, reflecting lower confidence in earnings normalisation.
Disclaimer: This article is based on the brokerage report by CLSA. It does not constitute investment advice.
