India’s private sector banking industry is rapidly expanding, with its market share projected to reach about one-third by 2025, up from just 12 percent in 2000. In FY25, private banks’ credit growth moderated sharply to 9.5 percent, after years of above 15 percent growth, while the private banking market size reached $14.14 billion in 2024. The sector’s growth is driven by digital innovation and rising demand for retail and personalized services.
With a market capitalization of Rs 65,740.63 crore, the shares of IndusInd Bank Ltd were trading at Rs 844.35 per share, increasing around 4.35 percent as compared to the previous closing price of Rs 809.15 apiece.
Brokerage Recommendation
The shares of IndusInd Bank Ltd have seen positive movement after global brokerage Nomura upgraded its target price by 50 percent, from Rs 700 to Rs 1,050, maintaining a ‘Buy’ rating. This implies a 24 percent upside from Wednesday’s closing price of Rs 844.35. The upgrade reflects Nomura’s confidence in the bank’s growth prospects and overall sector stability, boosting investor sentiment.
Nomura’s upgrade is driven by IndusInd Bank’s governance focus, leadership transition efforts, and intent to reset operations in FY26. RBI’s supportive comments on the bank’s recovery add regulatory confidence. Additionally, potential RBI approval for promoter stake hike could further boost investor sentiment and reduce concerns over ownership stability.
IndusInd Bank recently faced turbulence due to governance concerns and accounting lapses. However, it has undertaken a major clean-up, making one-time provisions to resolve legacy issues. These corrective steps signal improved financial discipline and a move toward restoring investor confidence and operational stability.
Nomura raised IndusInd Bank’s FY27–28F EPS estimates by 14 -16 percent, citing stronger net interest income and lower credit costs. It forecasts RoA to rise to 0.8 -1.1 percent and RoE to improve to 7–10 percent during FY26 – 28F, reflecting better profitability and operational efficiency.
IndusInd Bank boasts ₹3.45 lakh crore in loans and ₹4.10 lakh crore in deposits, catering to 41 million customers and operating across 7,174 branches nationwide. With 93% of transactions digital, a 33% CASA ratio, and diversified lending, it is backed by strong domain expertise.
Indusind Bank Limited (the Bank) is engaged in providing financial services. The Bank offers a wide range of products and services for individuals and corporates, including microfinance, personal loans, personal and commercial vehicle loans, credit cards, and small to medium enterprise (SME) loans.
Written by Abhishek Singh
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