ICICI Securities predicts IndusInd Bank's potential loss

ICICI Securities has reiterated a "reduce" rating on IndusInd Bank, setting a target price of Rs 850. Concerns over internal hedging in foreign currency derivatives may impact the bank's profitability in Q4FY25, potentially leading to a loss. The current market price of IndusInd Bank is Rs 678.55, with a market cap of Rs 52,628.84 crore. The bank reported a consolidated total income of Rs 15,155.80 crore for the quarter ending December 2024, showing a slight increase from the previous quarter. IndusInd Bank has stopped internal hedging since April 2024, identifying discrepancies in its derivative portfolio around September 2024. The brokerage believes these issues reflect poorly on the bank's internal controls and maintains its "reduce" rating.