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Last Updated : Jun 27, 2019 09:48 AM IST | Source: Moneycontrol.com

IndusInd Bank shares gain after Deutsche says it sees 32% upside

Deutsche sees stress book gradually declining and expects the Bank to deliver 2 percent return on assets and 20 percent return on equity by FY21

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IndusInd Bank shares gained 2 percent intraday on June 27 after global brokerage Deutsche Bank said it expects 32 percent upside in the stock given benefits from Bharat Financial merger and improving asset quality.

"We have a buy rating on the stock with a price target at Rs 1,900 per share as we believe merger benefits from Bharat Financial will play out and fears on non-performing loans (NPLs) are misplaced," the research firm said.

Deutsche sees stress book gradually declining and expects the Bank to deliver 2 percent return on assets and 20 percent return on equity by FY21.

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IndusInd Bank expects asset quality trends to return back to normalised levels. "We expect FY20/21 credit cost to be 120 bps/110 bps," the brokerage said.

The stock was quoting at Rs 1,460, up Rs 24.70, or 1.72 percent on the BSE at 0934 hours IST.

Disclaimer: The views and investment tips expressed by brokerages on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on Jun 27, 2019 09:48 am
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