IndusInd Bank rallies 6%; what's driving private sector lender stock today?

Global brokerage firm Nomura upgraded its rating on the IndusInd Bank to "buy" and raised the target price to ₹1,050 per share

Share price of IndusInd Bank today: Shares of IndusInd Bank rallied 6 per cent to ₹855.20 on the BSE in Wednesday’s intra-day trade amid heavy volumes in an otherwise subdued market.  The surge in the stock price came after the brokerage firm Nomura upgraded the stock to ‘buy’ and raised its price target to ₹1,050.

 

The stock price of the private sector lender had hit a recent high of ₹857 on June 10, 2025. It has bounced back 41 per cent from its 52-week low level of ₹605.40 touched on March 12, 2025.

 

At 10:37 AM, IndusInd Bank was trading 4.6 per cent higher at ₹846.20, as compared to a 0.04 per cent decline in the BSE Sensex. The average trading volumes on the counter jumped over threefold, with a combined of around 10 million shares changing hands on the NSE and BSE.  Track LIVE Stock Market Updates Here

What’s driving the rally in IndusInd Bank?

Global brokerage firm Nomura upgraded its rating on the stock to “buy.” It also raised the target price to ₹1,050 from ₹700, indicating a potential upside of 25 per cent from current levels.

 

According to Nomura analysts, the commitment from the board to improve governance, the ongoing search for a new leadership and the clear intent to “start FY26F on a clean slate” are crucial positive signs. Also, the Reserve Bank of India (RBI’s) recent statements acknowledging IndusInd Bank’s recovery efforts provide a degree of regulatory comfort. RBI’s potential approval for the promoter to raise stake in the bank could allay some investor concerns.

 

The past few months have been turbulent for Indusind Bank owing to governance failings and accounting lapses. However, the bank has undergone a significant clean-up of its books and has taken one-time provisions to address legacy issues. 

Crisil Ratings' view on IndusInd Bank

The long-term rating was placed on ‘Watch Negative’ on May 7, 2025, following the resignation of the top two managerial personnel as well as disclosure of a review being conducted on the bank’s microfinance business by an internal audit department to examine a few concerns, brought to attention during finalisation of accounts. 

 

Earlier, on March 10, 2025, the bank had disclosed a discrepancy in the accounting of derivatives. On May 21, 2025, the bank announced its annual results for fiscal 2025 and disclosed various accounting issues, which had a significant impact on profit.

 

With respect to key managerial personnel, following the resignation of Sumant Kathpalia, managing director and chief executive officer (CEO) and Arun Khurana, whole-time director (Executive Director) and deputy CEO, the RBI has advised the bank to submit proposals for the appointment of the new CEO by June 30, 2025.  

 

While the selection process is at an advanced stage, induction of new senior management personnel and stability of other key managerial personnel will remain key monitorable, CRISIL Ratings said in its rationale.

 

With respect to the microfinance business, the bank has implemented guardrails effective April 1, 2025, restricting disbursements to customers with not more than three lenders. Moreover, early bucket delinquencies show an improvement for both stock as well as fresh flow of delinquencies. Nevertheless, the ability to maintain asset quality metrics, both within the microfinance segment and the overall loan book, remains a key monitorable, the rating agency said.