IndusInd Bank (IIB IN) – Q2FY27 Result Update – Growth back in reckoning; CASA accretion a key – Upgrade to ‘BUY’
Published on 24 Oct 2026
IIB saw good quarter as core PPoP was a 5.3% beat led by better fees; NII/NIM and loan were in-line. Fee income growth was granular and broad based across retail/wholesale. However, we are watchful of the likely effect of the IRDAI draft regulation. Bank is moving from a stability to growth phase; ex-FCNR loan growth was healthy at 6.2% QoQ led by corporate and rural. With LDR at ~85%, IIB could see loan growth of 22% YoY (ex-FCNR 16%) for FY27. We increase loan growth by 100bps in FY28E to 14% that is offset by higher opex. Bank aspires to reach RoA of 175-200bps over the medium term. We tweak multiple to 1.1x from 1.2x while we roll forward to Sep’28 ABV and trim TP to INR1,100 from INR1,150. Upgrade to ‘BUY’ from ‘ACCUMULATE’.
