• On the BSE, shares of IndusInd Bank are trading at ₹1222.75, down 1.45 per cent.
Private lender IndusInd Bank in its pre-quarterly update reported a 19 per cent year-on-year (YoY) growth in net advances at ₹2,71,966 crore at the end of December 31, 2022 (Q3FY23). Net deposits also grew by 14 per cent year-on-year to Rs 3,25,491 crore. Brokerage firm Jefferies has given 'Buy' rating and price target of ₹1,600 on the banking stock.
On the BSE, shares of IndusInd Bank are trading at ₹1222.75, down 1.45 per cent.
The Jefferies target suggests 23 percent upside, taking into account Monday's closing print.
"IndusInd Bank's 3QFY23 Pre-quarter update shows loan growth of 19% YoY / 5% QoQ, which we believe is led by acceleration in retail loan growth (CVs and MFIs) which also lead to better margins. Deposit growth Slowing at 14% YoY / 3% QoQ, Retail deposits and CASA deposits growing at 21% / 18% YoY. We see the bank moving towards c.20% loan CAGR and 2% ROA. Rating 1.5 x FY24 adj PB are attractive. It remains among the top picks in the sector. Buy." Jefferies said in his note.
The bank's loan growth remains healthy as it grew by 4.6 per cent QoQ and 4.9 per cent on a YoY basis.
While deposit growth remained healthy at 3 per cent QoQ and up 14.3 per cent, CASA mix declined 40bp QoQ to 42 per cent.
Retail deposits and deposits from small business customers as on 31 December 2022 stood at Rs 1,37,968 crore as against Rs. 1,29,990 crore by 30 September 2022.
Its market cap is ₹94,813.87 crore. IndusInd Bank reported a 60.4 percent rise in net profit at ₹1786.72 crore for the September quarter. The net profit for the same quarter was ₹1113.53 crore.
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