IDBI Capital Backs IndusInd Bank With Buy Rating Post Q1
IDBI Capital upgrades IndusInd Bank to Buy after Q1 recovery.
IndusInd Bank shares are expected to remain in focus after IDBI Capital upgraded its rating on the private sector lender to "Buy", citing signs of recovery in its first-quarter performance and improved growth prospects. The brokerage said the bank's strengthening business momentum, particularly across retail, small and medium enterprise (SME), and rural lending segments, along with a healthier liability franchise, is expected to drive sustainable loan growth and profitability in the coming quarters.
According to IDBI Capital, the bank has shown encouraging progress following its first-quarter results, supported by improving traction in core lending businesses and enhanced deposit mobilisation. The brokerage noted that a stronger liability franchise is likely to provide a stable funding base, enabling the bank to expand its loan book while maintaining operational efficiency. It added that the recovery reflects improving business fundamentals despite challenges faced by the banking sector in recent quarters.
The brokerage also highlighted the bank's robust capital position as a key strength. IndusInd Bank reported a Common Equity Tier-1 (CET-1) ratio of 16.1% and a Capital to Risk-Weighted Assets Ratio (CRAR) of 17.15%, indicating that the lender remains well-capitalised to support future business expansion. A strong capital base provides the bank with greater flexibility to pursue growth opportunities while meeting regulatory requirements and maintaining financial stability.
Also Read: Citi, Macquarie Back BPCL on Strong Operational Show
Based on these factors, IDBI Capital has upgraded the stock to a "Buy" rating and assigned a target price of Rs 1,100 per share. The brokerage believes that improving earnings visibility, stronger loan growth and a healthy capital position could support a gradual re-rating of the stock over the medium term. However, analysts note that investors will continue to monitor asset quality, credit growth and broader macroeconomic conditions, which remain important factors influencing the bank's future performance.
Also Read: Citi, Macquarie Back BPCL on Strong Operational Show
