Motilal Oswal (MOSL) has downgraded IndusInd Bank from ‘buy’ to ‘neutral’, lowering the target price to ₹925 from ₹1,100. The downgrade follows an accounting discrepancy that has led to a 2.35% hit on the bank’s net worth, raising concerns over near-term uncertainties.
Key insights:
- The discrepancies arose from internal trades involving low-liquidity swap contracts on 3/5-year yen and 8/10-year dollar borrowings, which were not marked to market (MTM).
- The financial impact of this issue is expected to be absorbed in Q4FY25.
At the time of assessment, IndusInd Bank’s share price was trading at ₹901.95.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Please consult a financial expert before making any investment decisions.
