IndusInd Bank extends up move, gains 3%; stock at 52-week high

The stock price of private sector lender - IndusInd Bank - quoted at its highest level since February 2026, and has rallied 10 per cent in the past week.

IndusInd Bank share price movement

 

Share price of IndusInd Bank hit a fresh 52-week high of ₹1,005.65, gaining 3 per cent on the BSE in Monday’s intra-day deals, extending its past 4-day up move, post June 2026 quarter business update. 

 

The stock price of the private sector lender was quoting at its highest level since February 2026. It quoting higher for the fifth straight trading day, rallying per cent in the past week. In comparison, the BSE Sensex was up 2.2 per cent per cent.

 

IndusInd Bank – Q1 business update

 

In the April to June 2026 quarter (Q1FY27), IndusInd Bank’s deposits jumped 4.5 per cent year-on-year (YoY) and 3.8 per cent quarter-on-quarter (QoQ) to ₹4.14 trillion compared with ₹3.97 trillion as on June 30, 2025 (Q1FY26), IndusInd Bank said in the Q1 provisional business update.

 

 

However, net advances fell 2.3 per cent YoY and up 3.3 per cent QoQ to ₹3.26 trillion. Current Account Savings Account (CASA)  ratio declined to 29.5 per cent as on Q1FY27 compared to 31.5 per cent in Q1FY26 and 31.2 per cent in Q4FY26.

 

IndusInd Bank - India Ratings and Research (Ind-Ra) rationale

 

India Ratings and Research (Ind-Ra) maintained the 'Negative' Outlook in view of the reduction in the franchise share over the last two years, with the market share of advances and deposits declining to 1.51 per cent and 1.59 per cent, respectively, in FY26 (FY24: 2.1 per cent and 1.89 per cent). Furthermore, the retail liability franchise is moderate, with retail liquidity coverage ratio (LCR) at 47.9 per cent in FY26 (much lower than peers), which is reflected in the cost of deposits of 6.07 per cent in Q4FY26.

 

In the near-to-medium term, Ind-Ra believes that IBL would report moderate profitability, with Return of Assets (RoA) of 1 per cent at end-Q4FY28 (average of 1.8 per cent over FY23-FY24), largely due to negative carry from the bank’s excess liquidity and a steady increase in the share of secured assets. 

 

Moreover, sustained opex for higher retail and the focus on small and medium enterprises (SME) assets (cost to income of 60.1 per cent and 63.6 per cent in FY25 and FY26, respectively) along with the creation of provisions for Ind-AS implementation and reducing net non-performing assets (NNPA), are likely to put pressure on the ROA in the near-to-medium term, the rating agency said.

 

Meanwhile, IndusInd Bank’s management expects the slippages across all sectors to remain under control in FY27. The reduction in credit cost will also be supported by an expanding advances base. The gross non-performing assets (GNPA) ratio improved by 14bp quarter-on-quarter (QoQ) to 3.43 per cent in Q4FY26, and the NNPA ratio improved by 4bp QoQ to 1 per cent, with provisioning coverage ratio (PCR) of 71.4 per cent. The management has maintained its previous target of reducing the NNPA to about 0.6 per cent in a phased manner over the medium term. 

 

With the decline in NNPA, net security receipts (0.09 per cent in FY26) and restructured book (0.07 per cent in FY26), the management opined that credit costs seemed to have moved past their peak and are likely to improve in the medium term. Furthermore, they have not observed any material stress on the overall portfolio (including Micro, Small & Medium Enterprises or MSME) due to the West Asia war. Ind-Ra opines that, given the exposure to high yielding segments, maintaining of contingent provisions would help IndusInd Bank contain the volatility in profitability over the medium term.  =======================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.