IndusInd Bank up 3% in subdued market; why private sector lender in focus?

In the past one month, the stock price of IndusInd Bank has outperformed the market by gaining 13 per cent, as against 1 per cent rise in the BSE Sensex.

IndusInd Bank share price today

 

Shares of IndusInd Bank moved higher by 3 per cent to ₹855.60 on the BSE in Friday’s intra-day trade in an otherwise subdued market. In comparison, the BSE Sensex was down 0.24 per cent at 01:57 PM.

 

In the past one month, the stock price of the private sector lender outperformed the market by gaining 13 per cent, as against 1 per cent rise in the benchmark index. However, thus far in the calendar year 2025, IndusInd Bank has underperformed by falling 12 per cent. In comparison, the BSE Sensex has rallied 9 per cent during the period. 

 

Why is IndusInd Bank share price in focus today?

 

IndusInd Bank is in the initial stages of assessing investor interest for a possible sale of shares to qualified institutional investors, as senior management begins meeting funds to rebuild confidence after the recent forex derivative accounting issues and leadership exits. While the bank has publicly denied any ongoing fundraise, sources say it may look to raise “confidence capital,” with Citibank helping identify potential buyers.

 

“We had denied the aforesaid news and wish to reiterate that any such news regarding capital raising are speculative and factually inaccurate. We categorically deny having any such discussions as reported in aforesaid media reports,” IndusInd Bank said in exchange filing. CLICK HERE FOR MORE DETAILS

 

According to analysts at ICICI Securities, if the move materialises, both the Hinduja Group (15.8 per cent stake) and LIC (5.1 per cent) are expected to participate and maintain their stakes. IndusInd already has the board approval to raise up to ₹30,000 crore, including ₹10,000 crore through equity, and may use any fresh capital to bolster buffers ahead of an anticipated rise in loan demand, despite CAR being comfortable at the bank remains 16.5 per cent and Tier-1 at 15.2 per cent as of September, the brokerage firm said in a note. 

 

JM Financial Institutional Securities view on IndusInd Bank post Q2 results

 

IndusInd Bank is undergoing a transition phase marked by balance sheet consolidation, leadership restructuring, and a strategic pivot toward risk containment. While these steps are structurally positive for long-term sustainability, near-term operating metrics remain under pressure. 

 

Given the ongoing stress in asset quality and earnings volatility, analysts at JM Financial Institutional Securities expect average ROE/ROE to remain subdued at 0.7 per cent/6 per cent over FY26-28E. Hence, the brokerage firm downgrades stock to Reduce (as per its new rating system) with a revised target price of ₹775, valuing bank at 0.9x FY27E BVPS. The bank’s sustained improvement in asset quality and operating metrics would be key triggers for re-rating.