IndusInd Bank experienced a significant decline in its shares on October 25, with a drop of 15%, which is the largest decline in almost five months. This decline was a result of disappointing Q2 FY25 results.

The bank's consolidated net profit decreased by 39.5% compared to the previous year, amounting to Rs 1,331 crore. Despite a 5% increase in net interest income (NII) to Rs 5,347 crore, the growth in NII did not meet market expectations. Additionally, the net interest margin (NIM) decreased from 4.29% to 4.08% compared to the previous year, indicating a decline in profitability.

In response to this weak performance, Motilal Oswal issued a 'buy' call for IndusInd Bank, setting a target price of Rs 1,500 per share. HSBC also maintained its 'buy' rating but reduced its target price to Rs 1,510 from Rs 1,770. HSBC cited disappointing results in microfinance loans as the reason for the reduction, which had a negative impact on loan growth, NIM, and credit costs. As of 9:55 am, shares were trading at Rs 1,099.30 on the National Stock Exchange (NSE), reflecting the market's response to the bank's financial challenges.