Shares of Mumbai-based private lender IndusInd Bank Ltd. will be in focus on Friday, April 4, after global brokerage firm UBS maintained a ‘Sell’ rating on the bank stock.

The brokerage has also cut its price target on the stock by 22% to ₹600 from ₹770 earlier. The revised price target implies a potential downside of 15% from current levels for IndusInd Bank. It is also the lowest price target on the Street for the stock.

In its note, UBS mentioned multiple factors that could lead to further de-rating of IndusInd Bank. Key concerns include deposit flows, the appointment of a new Chief Executive Officer (CEO), and the findings of the external auditor’s report, which the brokerage considers critical indicators for the bank’s future performance.

UBS has lowered its loan growth estimate by 200 basis points (bps) to 10%. It has also reduced its Net Interest Margin (NIM) estimates by about 20–25 bps for financial years (FY) 2026 and 2027.

Credit costs expected to remain elevated at approximately 1.7% in FY26.

UBS has trimmed its earnings per share (EPS) estimates by approximately 14-15% for FY26 and FY27 due to lower margins and higher credit costs.

The brokerage remains cautious about the lender’s near-term outlook given these multiple headwinds.

IndusInd Bank has recently denied receiving any report from PricewaterhouseCoopers (PwC) regarding alleged accounting discrepancies in its derivatives portfolio.

A spokesperson said, “IndusInd Bank clarifies that the bank has not received any report from external agencies conducting the review.”

Earlier, reports suggested that PwC would submit its findings on March 28.

Out of the 47 analysts that have coverage on IndusInd Bank, 20 of them have a ‘Buy’ rating, 18 of them have a ‘Hold’ rating, while nine of them have a ‘Sell’ recommendation.

Shares of IndusInd Bank closed 0.88% higher on Thursday at ₹708.60. The stock has fallen 55% from its recent high of ₹1,576.