IndusInd Bank’s net advances rose 1.4% year-on-year (YoY) but declined 5.2% quarter-on-quarter (QoQ) to ₹3.47 lakh crore.
Total deposits grew 6.8% YoY and 0.4% QoQ to ₹
4.11 lakh crore. However, the Current Account Savings Account (CASA) ratio declined to 32.8%, compared to 37.9% a year ago and 34.9% in the previous quarter.
The bank’s corporate banking segment saw a contraction, with net advances declining 4.9% YoY and 15.1% QoQ, while the consumer banking business expanded, reporting a 6.3% YoY and 3.4% QoQ increase.
Retail deposits and deposits from small business customers stood at ₹1.85 lakh crore as of March 31, 2025, down from ₹1.88 lakh crore at the end of the previous quarter.
The lender’s daily average Liquidity Coverage Ratio (LCR) for the quarter stood at 118.4%, with the LCR as of March 31, 2025, at 136.2%.
Brokerage firm UBS maintained a ‘Sell’ rating on the IndusInd Bank stock, and also cut its price target on the stock by 22% to ₹600 from ₹770 earlier. It is also the lowest price target on the Street for the stock.
UBS mentioned multiple factors that could lead to further de-rating of the bank stock. 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 FY26 and FY27.
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 foreign 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, 2025.
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 settled 3.48% lower on Friday at ₹684.70. The stock is down nearly 57% from its recent high of ₹1,576.35.