IndusInd Bank's core PAT estimates for FY25/26 have been trimmed by 11.7% and 8.5% due to reduced NIM and fee cuts, following a disappointing quarter with a 14% miss on core PAT. The bank's reported NIM fell QoQ by 17bps, driven by a decline in higher-yielding MFI loans and a muted loan growth of 13.2% YoY. Despite creating buffer provisions of Rs5.25bn for potential stress, the bank anticipates a recovery in MFI disbursals, leading to a revised target price of Rs1,600, down from Rs1,750, while maintaining a BUY rating.