IndusInd Bank dips 8% to hit 3-week low after UBS downgrades scrip to sell

The brokerage firm lowered its price target to Rs 1,400, drawing inference from the lending cost of the bank, which it believes, could rise to 150 bps in FY20

Shares of IndusInd Bank hit three-week low of Rs 1,441 per share, slipping 8 per cent intra-day on Thursday after foreign brokerage UBS downgraded the stock to ‘sell’ from ‘neutral’ on expectations of higher credit costs. 

The brokerage firm also lowered its price target to Rs 1,400, drawing inference from the lending cost of the bank, which it believes, could rise to 150 basis points (bps) as against the lender's guidance of 65 bps in FY20. 

"The private lender’s lending to non-investment grade (NIG) rated companies is relatively higher than earlier expectations. Moreover, retail deposits, as a percentage of external