Bank stocks are under pressure due to the poor performance of microfinance institutions (MFIs) and a decline in asset quality.

IndusInd Bank's net profit for the second quarter has decreased by 39 percent compared to the previous year, primarily due to increased provisions, reduced margins, and worsening asset quality.

As a result, several brokerages have adjusted their target prices for the bank. Nuvama Institutional Equities, for example, has lowered its target price to Rs 1,290 per share and downgraded the stock rating from 'buy' to 'hold.' This reflects investors' growing concerns about the bank's financial health and future prospects.