IndusInd Bank's target price has been revised to Rs 1,600 by Prabhudas Lilladher, which is lower than the previous target of Rs 1,750. This adjustment is a result of a disappointing quarter for the bank, where its net interest income (NII), fees, and asset quality did not meet expectations.

The decline in net interest margin (NIM) was attributed to a drop in loan yields, primarily due to a reduction in the higher-yielding microfinance institution (MFI) portfolio and an increase in lower-yielding commercial banking. The bank has set aside Rs 5.25 billion in buffer provisions to address potential stress from the MFI sector and the implementation of expected credit loss (ECL) standards. The bank expects improvements in disbursals in the MFI sector as market conditions stabilize, although it may take time to return to normal yield levels.

The bank's core profit after tax (PAT) fell short by 14%. The bank expects improvements in disbursals in the MFI sector as market conditions stabilize, although it may take time to return to normal yield levels.