IndusInd Bank shares hit 52-week low; slump 10% in four sessions

Shares of IndusInd Bank continued losing streak on Monday, falling over 5% intraday to hit a 52-week low, after analysts downgraded the banking stock and lowered price targets. The rating action followed after the Reserve Bank of India (RBI) granted only a one-year extension to its incumbent CEO Sumant Kathpalia, instead of the three-year term recommended by the board.

Weighed down by the development, IndusInd Bank share price dropped 5.4% to touch a 52-week low of ₹886.40. Early today, the shares of private lender opened lower for the fourth consecutive day at ₹895, down 4.5% against the previous closing level of ₹936.80. In four trading days, the banking stock has fallen over 10%.

At the time of reporting, IndusInd Bank shares were trading 3.2% lower at ₹907 on the BSE, with a market capitalisation of ₹70,660 crore. At this level, the stock is down 42% from its 52-week high level of ₹1,576 touched on April 8, 2024.

In the last six months, the counter has lost 37%, while it corrected over 6% in the calendar year 2025, and 15% in a month.

In an exchange filing on March 7, IndusInd Bank said that the RBI has approved re-appointment of Sumant Kathpalia as managing director & CEO of the lender for a further period of one year, effective from March 24 till March 23, 2026. The appointment is subject to the approval of the bank’s shareholders.

“We hereby inform that the Reserve Bank of India vide its letter dated March 6, 2025 has conveyed its approval for re-appointment of Mr. Sumant Kathpalia (DIN: 01054434) as Managing Director & CEO of the Bank for a further period of one year with effect from March 24, 2025 till March 23, 2026,” it said in a BSE filing.

In September 2024, the board of directors of IndusInd Bank had approved the re-appointment of Kathpalia for a tenure of three years. He has been part of the core leadership team and joined the bank 16 years ago.

Brokerages downgrade IndusInd Bank

Foreign brokerage house UBS has downgraded the stock to "sell" from "neutral" and also lowered price target to ₹850 from ₹1,070 earlier. The agency opines that one-year re-appointment of Kathpalia is negative for the bank's near-term earnings outlook as the focus will shift back to regulatory prescriptions.

Another global brokereage BofA Securities has also downgraded the stock to an "underperform" from its earlier rating of "buy", cutting the price target to ₹850 from ₹1,250 earlier.

On the other hand, Jefferies and Citi have retained their "buy" rating on the stock, citing attractive valuations. While Jefferies has slashed its price target on IndusInd Bank to ₹1,080 from ₹1,200 earlier, Citi has given a price target of ₹1,375.

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