IndusInd Bank (IIB IN) – Q4FY26 Result Update – Balance sheet de-risking progressing well – ACCUMULATE
Published on 25 Apr 2026
IIB saw good quarter as NII was in-line that did not contain any one-offs while asset quality improved. As loan growth is yet to pick-up, fee was a miss. Overall slippage fell by 29% QoQ to 212bps & MFI slippage was down ~50% QoQ that led to lower provisions at 1.80% (PLe 2.36%). Balance sheet de-risking is progressing well with share of large corp./MFI declining to 43%/5% from 48%/9% YoY. 57% of MFI portfolio is covered under CGFMU credit guarantee (38% as of Dec’25). As bank is targeting system level credit growth in FY27, deposit accretion remains a key monitorable. We keep multiple at 1.0x on FY28 ABV and maintain TP at INR 960. Retain ‘ACCUMULATE’.
