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Last Updated : Sep 18, 2018 03:35 PM IST | Source:

Buy IndusInd Bank; target of Rs 1971: HDFC Securities

HDFC Securities is bullish on IndusInd Bank has recommended buy rating on the stock with a target price of Rs 1971 in its research report dated July 10, 2018.

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HDFC Securities' research report on IndusInd Bank

It  was  a  quarter  of reversion for IIB as slippages normalised (post the divergence in 4Q) and fee growth returned to normal levels (+20% YoY) after a  multi-quarter  low.  The bank continued to deliver steadily on all other counts with robust loan growth (+28% YoY), strong CASA accretion (+37% YoY) and  curtailed opex (up merely 12% YoY). Though NIMs were 5bps lower QoQ at 3.92%,  they  should  rebound as re-pricing (post the recent hikes in MCLR) kicks in.Our  constructive  thesis  on IIB is driven by the management’s consistency and  ability  of  meeting  (if not beating) defined targets. We believe IIB will  continue  to  comfortably  surpass  system growth as PSBs cede market share  and corporate tilted private banks grapple with asset quality. Clear focus  on  RoA  accretion  through  any  inorganic  expansion  will prevent reckless  moves  and  create long term value.


The merger and integration of BFI  will  provide a fillip to already superior return ratios. Maintain BUY with a TP of Rs 1,971 (3.75x Mar-20 ABV of Rs 526).

For all recommendations report, click here

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First Published on Jul 13, 2018 05:08 pm
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