**INDUSIND BANK MARKET BRIEF: FEBRUARY 2026** **Executive Leadership and Governance Reset** IndusInd Bank is undergoing a significant structural overhaul to restore investor confidence. Arijit Basu has officially assumed the role of Part-Time Chairman as of **January 31, 2026**, succeeding Sunil Mehta. This transition is part of a broader board restructuring aimed at enhancing oversight following past accounting lapses. MD & CEO Rajiv Anand is leading the operational reset, focusing on accountability and the closure of technology and control gaps. The bank is prioritizing internal stability and balance sheet "right-sizing" before entertaining major strategic mergers or investor entries, which remain under the board's discretion. **Financial Performance and Stock Valuation** The bank returned to profitability in the quarter ended **December 31, 2025**, reporting a net profit of **128 crore**. While this is a recovery from previous losses, it represents a **90%** decline compared to the previous year, primarily due to elevated credit costs and provisioning of **2,096 crore**. As of **February 19, 2026**, the stock was trading at approximately **927.35**, reflecting a **1.84%** daily decline but showing resilience with a **10.4%** gain over the last three months. The bank’s market capitalization stands near **72,243 crore**, with a Price-to-Book (P/B) ratio of **1.14**, indicating the market is valuing the lender close to its fundamental book value. **Strategic Growth Verticals** The bank is pivoting toward a more granular and stable retail franchise. Key growth targets include: * **Gold Loans:** Scaling operations to **500 branches** to capture a share of the rapidly expanding market, which has seen **125%** year-on-year growth. * **MSME Lending:** Aiming to double the current MSME book from **45,000 crore** to **90,000 crore** to leverage high credit demand in the sector. * **Affordable Housing:** Expanding its footprint in the low-cost housing segment to diversify the loan portfolio. **Liability Management and Asset Quality** Efforts to improve liability generation are underway as the bank moves away from volatile bulk deposits. The CASA ratio stood at **30.3%** in December 2025, down from **34.9%** a year prior, highlighting the competitive pressure in attracting low-cost deposits. Asset quality is showing early signs of stabilization. The Gross NPA ratio was reported at **3.56%** for the most recent quarter, with the Net NPA at **1.04%**. Management has guided for a Return on Assets (RoA) of **1%** by the end of **FY27**, contingent on continued recovery in the microfinance segment and cost optimization.