Mumbai: Shares of IndusInd Bank rose 1.8% to ₹785 Thursday, rebounding from early lows, as investors took the lender’s first quarterly loss in 20 years in their stride. The stock was down 5.8% earlier in the day Analysts, however, remain cautious. Most brokerages have slashed earnings estimates and flagged concerns over governance, asset quality, and CEO succession. While a few see value if recovery takes hold, the broader view warns of a slow, uncertain turnaround.
UBS
Sees significant uncertainty around the bank’s future.
Warns of a potential drop in valuation due to multiple unresolved risks.
Morgan Stanley
Worst-case scenario is already unfolding.
Slow and painful earnings recovery, with a weakening high-return loan mix.
Agencies
ICICI Securities
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Weak core profitability even after adjusting for one-offs.
Expects low loan growth and high credit costs, which will pressure return ratios.
CLSA
‘A quarter to forget’ with a ₹22billion loss from fraud, underperformance, and one-offs.
Microfinance book stress remains elevated.
HSBC
Bank has reverted to pre-2009 quality levels.
Recovery path is unclear.
Jefferies
Clean-up was deeper than expected.
CEO transition as a critical factor for future recovery.
Macquarie
Stock is undervalued if the worst is over.
Concerns around asset quality, governance and CEO succession still persist.
Agencies
