IndusInd Bank (IIB IN) – Q3FY26 Result Update – Retail deposit growth a key monitorable – Upgrade to ‘Accumulate’
Published on 23 Jan 2026
IIB saw a stable quarter with no negative surprise. While loan book further declined by 2.6% QoQ led by fall in MFI/corporate, reported NIM at 3.35% was up by 3bps QoQ due to TD repricing and reduction in bulk liability sources. While Bank if targeting to grow in-line with industry in FY27E, RTD accretion would be a key. We envisage 10/7% YoY loan/deposit growth for FY27E. To increase granularity, focus is on scaling up segments like MSME, housing, gold, agri etc. Critical senior management vacancies have been filled and few more positions expected to be announced in Q4’26. While earnings downgrade cycle is largely over, strategy execution and earnings consistency may improve RoA visibility. Rolling forward to Mar’28 ABV, we increase TP to Rs960 from Rs840 as we raise multiple to 1.0x from 0.9x. Upgrade to ‘ACCUMULATE’ from ‘HOLD’.
