IndusInd Bank is clawing its way back from a steep sell-off, showing a 6% recovery in just eight sessions. The stock now trades at ₹983, bouncing from a one-year low of ₹928. The slump was largely tied to a disappointing Q2FY25 performance that led brokerage firms to slash their targets, triggering an intense sell-off. The bank’s much-anticipated Bharat Financial (BHAFIN) acquisition, aimed at building a strong rural deposit base, hasn’t delivered as hoped. Combined with struggles in retail lending and macroeconomic challenges in the microfinance (MFI) segment, IndusInd has found itself in a tight spot. On the auto finance front, weak demand has added to the challenges, while personal loans and credit cards—the backbone of its non-vehicle retail loan book—aren’t exactly thriving either. These factors have left analysts skeptical about the bank’s near-term trajectory. That said, there’s some optimism. Analysts expect stable margins for Q3FY25, aided by shifts in loan-to-deposit ratios and secured products. But risks in the bank’s MFI, vehicle finance, and small corporate portfolios remain a concern.