loader2
Login Open ICICI 3-in-1 Account

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

IndusInd Bank (Target Price - ₹950, HOLD) - “Gradual normalisation, recovery hinges on execution”

ICICIdirect Research 30 Jan 2026 DISCLAIMER

IndusInd Bank reported a modest sequential recovery in Q3FY26, aided by margin expansion and lower provisioning, though balance sheet growth remained muted. Advances declined to ₹3.17 lakh crore down 13.5% YoY (–2.6% QoQ) and deposits to ₹3.93 lakh crore down 3.8% YoY (1.1% QoQ).
Reported NIM improved 20 bps QoQ to 3.52%, however, excluding interest om tax refund which is one-off, margins were up 3 bps QoQ at ~3.35%, aided by term-deposit repricing and lower bulk funding. Management expects gradual margin improvement over coming quarters as deposit cost soften further and portfolio mix shifts toward higher-yielding segments.
Vehicle finance disbursements rebounded sharply to ₹12,900 crore (+26% QoQ) with improving asset-quality trends, and microfinance early delinquencies (31–90 DPD) also showed sequential improvement to 2.4% (vs 3.2% in Q2FY26). Further, management outlined RoA recovery framework, targeting ~1% RoA over a multi-year (~3-year) horizon.
However, normalization is likely to be gradual, with near-term earnings visibility constrained by elevated credit cost and slow recovery in high-yielding segments. While operating metrics are improving sequentially, sustained profitability revival will take time.

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere