Indusind bank shares: IndusInd Bank shares increased drastically on 18 June. The company’s shares jumped around 4% at the beginning of the trading and reached ₹ 841.25. The recent report of Japanese brokerage firm Nomura is the biggest cause of this boom. In this report, the bank’s rating was described as “purchasable” (purchasable), as well as increase its target price by ₹ 700 to ₹ 1,050, by about 50%.
Nomura report increased confidence:
According to Nomura report, the bank’s stock may get a more jump of about 30% compared to the current closing price ₹ 810.30. There are many positive factors behind the rating upgrade:
• Improvement in bank’s corporate governance
• Search for new leadership
• Start with a clean strategy for FY26 (‘Clean Slate’)
RBI’s remarks supported:
The report also reported that recently the Reserve Bank of India (RBI) has appreciated the bank’s recovery efforts. This has strengthened the trust of investors. Also, a positive sentiment can be formed with the possible approval to increase the promoter share.
Bank is coming out of previous challenges:
In the last months, IndusInd Bank was struggling with many types of governance and accounting flaws. But the bank has now clarified these flaws and has made concerted efforts to resolve old cases. This has improved the image of the bank.
Improvement in financial condition:
Nomura has compared the bank’s current status to RBL Bank in 2021 and Yes Bank in 2018. The report said that the condition of IndusInd Bank is far better now. Its performance in medium term is expected to improve.
Strong capital and liquidity:
According to the report, the bank’s capital and liquidity positions are very strong.
• CET-1 ratio: 15.1%
• LCR: 118%
• Retail business model is indicating fast recovery in profits.
Strength visible in EPS, ROE and NIM:
The bank’s estimated per share for FY27-28 is expected to be up to 14-16%.
• Net Interest Income (NII) Strong
• Decline in credit cost
• ROA: 0.8-1.1%
• ROE: 7-10%
Better position in the industry:
Nomura believes that the bank’s profitability seems better than big banks like State Bank of India and Bank of Baroda. However, if there was any new thing in the accounting issues or the appointment of new leadership was delayed, then the risk will also remain.
The current status of the stock:
By 9:33 am, IndusInd Bank shares were trading at 3.89% to ₹ 840.65. However, its shares are around 13.5% from the beginning of 2025.
Summary :
Nomura’s report has re -increased trust in the market in the market. Strong fundamentals, signs of improvement and positive comments of RBI can attract investors about this stock. The target is ₹ 1,050, ie more than 25% upside is still left from the current level.
