UBS has retained its ‘Sell’ rating on IndusInd Bank with a target price of ₹600, citing weak Q4FY25 performance and a lack of strategic direction. The brokerage flagged risks from lower balance sheet growth, deteriorating ROEs, and uncertainty around interest margins.
The lender swung to a net loss of ₹2,328.9 crore, driven by a steep fall in NII and a spike in provisions. Gross NPA rose sharply to ₹11,046 crore, with gross NPA ratio at 3.13%. The microfinance (MFI) portfolio contributed the most to negative surprises.
UBS believes the stock, despite its correction, is not inexpensive at 0.8x Sep’26E P/BV, especially in light of governance issues and rising risk perception. With the board yet to finalise the next CEO, the near-term outlook remains clouded.
Disclaimer: This article is based on the brokerage report by UBS. It does not constitute investment advice.
