Shares of the Mumbai-based private lender – IndusInd Bank – jumped 5.72% – the most in two months (since April 15), hitting an intraday high of ₹855.50 on the National Stock Exchange. Shares of IndusInd Bank jumped 5.69% to hit an intraday high of ₹855.20 on the BSE after global investment bank Nomura maintained a positive outlook on the stock.
IndusInd Bank is on a turnaround path, according to Nomura, which highlighted that most of the bank’s legacy issues are now resolved. The global investment bank expects IndusInd Bank’s return on assets (RoA) to grow steadily to 1% by FY27.
Nomura said the board’s commitment to enhancing governance standards, along with the ongoing search for a new CEO and a clear strategy to start FY26 with a “clean slate”, signal a constructive change in the bank’s outlook. These measures are seen as key positives that could boost investor confidence in the coming months. Nomura said IndusInd Bank’s valuation remains attractive, with the stock trading at just 0.9 times its one-year forward book value, offering a relatively cheaper entry point compared to rivals.
The recent approval of IndusInd Bank’s recovery efforts by the Reserve Bank of India has added another layer of regulatory comfort. Nomura believes this recognition, along with the possibility of the RBI allowing the bank’s promoter to increase its stake, could help assuage investor concerns about promoter overhang and governance. IndusInd Bank shares witnessed higher-than-usual trading volumes on stock exchanges after Nomura’s views were revealed.
On the National Stock Exchange, 82.29 lakh shares were traded against the average trading volume of 25.79 lakh shares. On the BSE, 4.76 lakh IndusInd Bank shares were traded compared to an average trading volume of 1.56 lakh shares daily in the past two weeks. As of 10:37 am, IndusInd Bank shares traded 5.41% higher at ₹ 852.95, outperforming the Nifty 50 index which was trading on a flat note.
