Nuvama has downgraded IndusInd Bank to ‘Reduce’ with a target price of ₹600 after the bank reported operating and net losses in Q4FY25, driven by a string of undisclosed accounting lapses across multiple business segments.
The bank posted a net loss of ₹2,328.9 crore, and a 43.3% fall in NII. Provisioning rose sharply to ₹2,522 crore, while asset quality worsened across the board. Nuvama noted it was unable to reconcile adjusted vs. reported PPOP, casting doubt on internal reporting systems.
Management has indicated that post one-offs, operating loss of ₹500 crore would normalize to a PPOP of ₹3,060 crore, but the brokerage said visibility for FY26 remains poor, especially on retail deposits, which could be impacted by credibility issues and higher liquidity needs, pressuring NIMs.
Disclaimer: This article is based on the brokerage report by Nuvama. It does not constitute investment advice.
