The upgrade note highlighted a string of positives: the board's renewed push for better governance, the ongoing hunt for new leadership, and a focused plan to 'start FY26F on a clean slate.'

Adding to the optimism, recent Reserve Bank of India (RBI) remarks recognizing the bank's clean-up efforts have offered a layer of regulatory reassurance. The brokerage also flagged that an RBI nod allowing promoters to raise their stake could further calm investor nerves.

IndusInd Bank has had its fair share of turbulence in recent months, battling governance lapses and accounting issues. But it has been in damage control mode -- cleaning up its books and making one-time provisions to close legacy chapters.

On the numbers front, the brokerage has raised its FY27-28F EPS estimates by 14-16%, citing stronger net interest income (NII) and lower credit costs. It expects RoA to climb to 0.8-1.1% and RoE to 7-10% over FY26-28F, a profitability outlook it says is more promising than peers like SBI and BoB.

Key risks flagged by the brokerage include the potential discovery of more discrepancies in the bank’s books and delays in finalizing new leadership. These could weigh on investor sentiment and stall the bank’s turnaround momentum.

IndusInd Bank offers a wide range of products and services for individuals and corporates, including microfinance, personal loans, personal and commercial vehicle loans, credit cards and SME loans.

The bank reported a standalone net loss of Rs 2,235.99 crore in Q4 FY25 as against a net profit of Rs 2,346.84 crore posted in Q4 FY24. Total income declined 22.83% year on year to Rs 11,342.65 crore in Q4 March 2025.