Shares of IndusInd Bank jumped nearly 3% on Tuesday to ₹830.10 after global brokerage Nomura upgraded the stock to a ‘Buy’ from ‘Neutral’ and sharply raised its target price from ₹700 to ₹1,050. The rally reflects renewed investor confidence driven by the bank’s ongoing governance reforms and strategic reset.
Nomura, in its note, pointed to resolution of legacy issues including unclear derivative valuations and lapses in internal accounting, which had earlier raised concerns. The brokerage said the bank now appears set for a “clean start” in FY26, backed by structural cleanup, improved compliance, and stronger executive accountability.
Adding to the sentiment, promoter group IIHL’s chairman Ashok Hinduja reaffirmed commitment to the bank, including support for a potential capital infusion. The RBI has also granted in-principle approval for IIHL to raise its stake to 26%, signaling regulatory support for the turnaround efforts.
Nomura expects key operating metrics like return on assets (RoA) to reach 1% by FY27, while highlighting that valuations remain attractive at 0.9x one-year forward BVPS. This combination of promoter backing, governance reforms, and regulatory clarity prompted the upgrade and higher price target.
