New Delhi, March 27 -- Emkay Global Financial Services has removed IndusInd Bank from its model portfolio, citing uncertainty over leadership and the fallout from the recent derivatives accounting issue. The domestic brokerage replaced the private lender with Power Finance Corporation (PFC), highlighting its attractive valuation and its potential to benefit from the firm's bullish outlook on the power sector.

In a recent update, Emkay Global announced that it no longer holds IndusInd Bank in its model portfolio, despite the stock's steep correction. The brokerage expressed concerns over the ongoing derivatives misstatement controversy and the bank's leadership stability.

"The prevailing valuations of IndusInd Bank probably over-discount...