IndusInd Bank shares surge nearly 6%, most in over two months; here is why

Shares of the Mumbai-based private lender - IndusInd Bank rose as much as 5.72% - the most in over two months (since April 15) to hit an intraday high of ₹855.50 on the National Stock Exchange. On the BSE, IndusInd Bank shares rose as much as 5.69% to hit an intraday high of ₹855.20 after global investment bank Nomura maintained positive view on the stock.

IndusInd Bank is on track for a turnaround, according to Nomura, which highlighted that most of the bank’s legacy issues have now been addressed. The global investment bank expects the IndusInd Bank’s return on assets (RoA) to improve steadily to 1% by FY27.

Nomura said that the board’s commitment to enhancing governance standards, coupled with the ongoing search for a new CEO and a clear strategy to begin FY26 with a "clean slate", signals a constructive shift in the bank’s outlook. These measures are seen as crucial positives that may boost investor confidence in the months ahead.

IndusInd Ban’s valuations remain attractive, with the stock trading at just 0.9 times its one-year forward book value, offering a relatively inexpensive entry point compared to peers, Nomura noted.

The Reserve Bank of India’s recent acknowledgement of IndusInd Bank’s recovery efforts adds another layer of regulatory comfort. Nomura believes this recognition, along with the possibility of the RBI allowing the bank’s promoter to raise its stake, could help address lingering investor concerns regarding promoter overhang and governance.

IndusInd Bank shares were witnessing higher than usual trading volumes on stock exchanges after Nomura's view came out. As many as 82.29 lakh shares changed hands on the National Stock Exchange against an average trading volume of 25.79 lakh shares.

On the BSE, 4.76 lakh IndusInd Bank shares changed hands compared to an average of 1.56 lakh shares traded daily in the past two weeks.

As of 10:37 am, IndusInd Bank shares traded 5.41% higher at ₹852.95, outperforming the NIFTY50 index which was trading on a flat note.