IndusInd Bank’s shares witnessed a nearly 2% decline after Morgan Stanley maintained an Equal Weight rating but revised its target price to ₹1,150, down from ₹1,400. The bank’s stock has fallen by 30% since its latest earnings report, largely due to increasing concerns over its asset quality in the microfinance (MFI) segment.
Morgan Stanley cited persistent challenges in the MFI portfolio and broader economic pressures as downside risks to the bank’s earnings. Despite its diversified revenue streams and robust liability management, the brokerage sees more favorable risk-reward opportunities in other large private banks.
IndusInd Bank has focused on expanding its digital banking initiatives and growing its retail loan book. However, concerns surrounding rural loan delinquencies and rising provisions have impacted investor sentiment, contributing to the stock’s underperformance.
The stock opened at ₹990.05, with a high of ₹992.65 and a low of ₹979.00. It remains significantly lower than its 52-week high of ₹1,694.50, while hovering closer to its 52-week low of ₹966.40.
As of 10:18 am, IndusInd Bank stocks were trading 1.38% lower at Rs 982.10 on the NSE.
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