Shares of IndusInd Bank declined by 1.68% to ₹697.50 in early trade on Friday, following a bearish outlook by global brokerage UBS. The stock slipped ₹11.90 from its previous close of ₹709.40 on the NSE after UBS downgraded the stock to a ‘Sell’ rating and sharply reduced its target price to ₹600 from ₹770, indicating a potential downside of over 15% from current levels.
UBS flagged several overhangs, including weak deposit traction, uncertainty around the bank’s CEO transition, and red flags raised in a recent auditor’s report. These issues, according to the brokerage, could weigh heavily on investor sentiment and valuation re-rating prospects.
The brokerage cut its FY26 loan growth forecast by 200 basis points to 10% and also lowered net interest margin (NIM) expectations by 20–25 basis points. Additionally, it sees credit costs rising to 1.7% in FY26, while earnings per share (EPS) estimates for FY26 and FY27 have been trimmed by 14–15%.
UBS warned that these combined headwinds may lead to further de-rating of the stock in the near to medium term.
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