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IndusInd Bank upgraded to Buy by Emkay with 17% upside potentialIndusInd Bank shares have been upgraded by Emkay Global, citing confidence in new management’s push to improve earnings quality and balance sheet mix. The target price has been raised to ₹1,100 per share from ₹800.By Shweta Mungre  February 20, 2026, 12:10:30 PM IST (Updated)2 Min ReadBrokerage firm Emkay Global has upgraded IndusInd Bank to 'Buy' from 'Reduce', raising its target price to ₹1,100 per share from ₹800, implying about 17% upside from the current market price, as confidence grows in the new management’s efforts to address structural gaps and improve governance.

The brokerage said the bank has taken steps to reorient its asset-liability mix and strengthen internal processes, alongside a clearer push towards improving earnings quality.

IndusInd Bank has already returned to profitability and is now guiding for credit growth in line with the broader banking system, with management targeting a return on assets (RoA) of around 1% by FY27, Emkay said in a note. It expects the bank's RoA to improve further to about 1.3–1.5% over FY28-29, supported by better balance sheet positioning and operating efficiency.

While the bank has guided for a transitional expected credit loss (ECL) impact of up to 1.5–1.7% of loans on a pre-tax basis, Emkay said this is unlikely to materially hurt the profit and loss account.

The brokerage, however, cautioned that net interest margins may not return to earlier peak levels, even as the overall quality of earnings is projected to improve.

Emkay also said the appointment of Rajiv Anand could support a more sustained turnaround, with a clearer medium-term strategy expected after the first quarter of FY27 results.

The brokerage believes the bank is setting the stage for a more durable recovery over the medium term, aided by improving sector tailwinds and positive sentiment towards large private banks. Further upside, however, will depend on sustained execution and stable asset quality.

IndusInd Bank reported a better-than-expected December quarter, with net profit at ₹128 crore, well above the CNBC-TV18 poll estimate of ₹42 crore, though down 90% year-on-year due to higher provisioning. Net interest income came in at ₹4,561.7 crore, beating estimates, while asset quality remained stable with the gross non-performing asset ratio improving slightly.

According to Bloomberg data, the stock currently has 8 buy, 6 hold and 18 sell recommendations from analysts.

IndusInd Bank shares have gained about 5% so far this year.Continue ReadingFirst Published: Feb 20, 2026 12:02 PM ISTTagsIndusInd Bank