IndusInd Bank (IIB IN) – Q1FY27 Result Update – Balance sheet recalibration over; growth phase begins – ACCUMULATE
Published on 23 Jul 2026
IIB saw decent quarter; NII adjusted for IT refund (INR 2.8bn) was in-line. Fees and opex were better leading to core PPoP beat of 8.5%. With balance sheet recalibration largely completed (loan de-grew over Q4’25-Q4’26) bank is entering its growth phase with loans growing by 3.3% QoQ (mainly led by corporate). Stress in MFI has normalized with the book likely to grow in upcoming quarters; its share is 5% that is guided to reach 7%. Share of retail deposits (as per LCR) has enhanced to 49.5%, up 160/320bps QoQ/YoY. Owing to consistent improvement in earnings trajectory, we raise multiple to 1.2x from 1.0 on FY28 ABV and increase TP to INR 1150 from INR 960. Retain ‘ACCUMULATE’.
