Buy IndusInd Bank; target of Rs 1850: Sharekhan

Sharekhan is bullish on IndusInd Bank has recommended buy rating on the stock with a target price of Rs 1850 in its research report dated January 18, 2024.

Broker Research

January 19, 2024 / 21:08 IST

Buy

26 Aug, 2025 12:21

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Sharekhan's research report on IndusInd Bank

IndusInd Bank (IIB) reported in-line performance with 17% y-o-y earnings growth, led by 9% y-o-y operating profit growth and a 12% y-o-y decline in provisions with RoA at 1.9%. NIMs were stable q-o-q at 4.3%. Repricing of loans along with the incremental loan mix skewed towards higher-yielding retail assets supported NIM despite increased COF, led by higher cost of deposits. Headline asset-quality ratios were stable q-o-q despite higher slippages (2.6% vs 2.3% q-o-q Higher slippages were from a one-off in corporate account, vehicle, MFI, and some other retail assets including Agri, LAP & merchant acquiring business. Management expects slippages trends to normalise going ahead.

Outlook

At the CMP, the stock trades at 1.7x/1.4x its FY2025E/FY2026E BV. We maintain Buy rating on the stock with an unchanged PT of Rs. 1,850.

For all recommendations report, click here