Last Updated:July 02, 2025, 10:54 IST
IndusInd Bank share price dropped nearly 3% intraday following global brokerage Goldman Sachs’ downgrade; Check latest target price
IndusInd Bank Share Price Today
IndusInd Bank Shares Fall: IndusInd Bank share price dropped nearly 3 per cent intraday following global brokerage Goldman Sachs’ downgrade to ‘sell’. Goldman Sachs said the bank has become a “weak franchise” and will see weak growth ahead.
IndusInd Bank shares declined sharply by 3.45% to hit a low of Rs 849 on the BSE on Wednesday, following a downgrade from Goldman Sachs. The brokerage revised its stance on the stock, citing concerns over earnings visibility and growth trajectory. Despite raising its target price from Rs 634 to Rs 722, Goldman Sachs downgraded the stock to ‘Sell’, warning that the private lender may exhibit a weaker growth profile even after potential recovery in the second half of FY26 and into FY27, according to CNBC TV18.
While the stock has bounced back 21% over the past month—outperforming the BSE Bankex’s 8.24% gain—it still remains 12% lower in 2025 so far and has declined 40% over the past year.
The caution comes amid ongoing leadership uncertainty. A Reuters report said the bank has submitted a shortlist of three senior bankers to the Reserve Bank of India (RBI) for the CEO post—Rajiv Anand, Rahul Shukla, and Anup Saha—all seasoned industry professionals. This follows the resignation of CEO Sumant Kathpalia and Deputy CEO Arun Khurana in April, amid accounting discrepancies in the derivatives portfolio. These discrepancies, coupled with fraud incidents and higher microfinance slippages, led to larger-than-expected losses in the March quarter.
Goldman Sachs has also slashed its FY26 and FY27 earnings per share (EPS) estimates for IndusInd Bank by 25% and 17% respectively. It noted that the stock may continue trading below book value due to poor earnings visibility.
Other brokerages remain cautious. Antique Stock Broking has a ‘Hold’ rating with a target of ₹880, while Kotak Institutional Equities has a ‘Reduce’ rating, valuing the stock at ₹800.
Meanwhile, IIFL Securities estimates a steep 66% year-on-year drop in IndusInd Bank’s Q1 FY26 profit to Rs 700 crore, with net interest income expected to fall 21% to Rs 4,300 crore and core pre-provision operating profit (PPoP) down 46% to Rs 2,100 crore.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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