CLSA sees 31% upside for IndusInd Bank after recent tumble

RBL Bank

13/03/2025 08:30

** Shares of IndusInd Bank INBK.NS down 0.5% at 681 rupees

** INBK shares down 27.5% this week on net worth hit due to discrepancies in derivative accounts and a smaller one-year extension to CEO; on course for worst week in five years

** Despite the drop, CLSA stock sees 31% upside in the next 12 months for the private lender

** While CLSA cut its price target to 900 rupees from 1,300 rupees, it maintained its "outperform" rating flagging possibility of some near-term positives

** Two fundamental positives in near term could be recovery in microfinance book and respite for margins on better liquidity and rate cuts - CLSA

** CLSA likens the one-year extension given to INBK's CEO earlier in the week to similar extension given to RBL Bank's RATB.NS MD four years ago

** INBK may also recover like RATB's shares did, if it meets the Street expectations on earnings in the next four-six quarters, says CLSA

** INBK stock down 29% YTD vs 5.5% drop in Nifty Bank index.NSEBANK

 (Reporting by Nishit Navin)

 ((nishit.navin@thomsonreuters.com;))