Jefferies has maintained its ‘Buy’ rating on IndusInd Bank, though it cut the target price to ₹920, calling Q4 a clean-up quarter where ₹4,700 crore (~6% of net worth) was charged off due to legacy issues and misclassifications.
The bank reported a ₹2,328.9 crore loss, as multiple one-offs — including GNPA upgrades, provisioning spikes, and interest reversals — hit profitability. Jefferies expects FY26 to be a low-growth year, with a gradual recovery from FY27 once a new CEO is appointed and key operational clean-up concludes.
Despite sharp estimate cuts, the brokerage believes current valuations already price in most of the risks and offer an opportunity for long-term investors once visibility improves.
Disclaimer: This article is based on the brokerage report by Jefferies. It does not constitute investment advice.
