Buy IndusInd Bank; target of Rs 1550: Motilal Oswal

Motilal Oswal is bullish on IndusInd Bank recommended buy rating on the stock with a target price of Rs 1550 in its research report dated January 18, 2023.

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January 19, 2023 / 20:33 IST

26 Aug, 2025 12:21

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Motilal Oswal's research report on IndusInd Bank

IndusInd Bank (IIB) reported an inline performance with PAT at INR19.6b (up 58% YoY; inline) with steady operating performance across all metrics. Loan growth came in healthy at 19% YoY with traction in both Corporate and Consumer Finance book. Within consumer, growth was broad based barring micro-finance (MFI). Fresh slippages moderated to INR14.7b (2.3% annualized). GNPA ratio improved 5bp QoQ to 2.06%, while NNPA increased 1bp to 0.62%. Restructured book declined to 1.25% in 3QFY23 from 1.5% in 2QFY23. The management suggested for 20-25% loan growth, while continued moderation in credit cost is expected to aid RoA expansion.

Outlook

We estimate IIB to deliver ~37% earnings CAGR over FY22-25, while RoA/RoE to expand to 2.2%/18%, respectively. We reiterate our BUY rating with a TP of INR1,550 (premised on 1.8x Sep’24E ABV).

For all recommendations report, click here