The development came days 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. 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. In September 2024, the board of directors of the bank had approved the re-appointment of Kathpalia for a tenure of three years.
Earlier this week, foreign brokerages UBS and BofA Securities downgraded IndusInd Bank shares to “sell”, and lowered price targets, after the RBI granted only a one-year extension to its incumbent CEO. UBS has cut price target to ₹850 from ₹1,070 earlier, citing 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. BofA Securities has also downgraded the stock to an “underperform” from its earlier rating of “buy”, slashing 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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