Buy IndusInd Bank; target of Rs 682: Anand Rathi

Anand Rathi 's research report on IndusInd Bank

Higher provisions (Rs9.5bn Covid-related) led to subdued Q2 earnings for IIB. Asset quality and PCR improved sequentially. The key positives for the quarter were 1) strong retail deposit growth, 2) strong collection efficiency, 3) management commentary of expected growth pick-up in H2 FY21 and 4) strong liquidity, PCR and capitalisation to withstand Covid-related stress.

Outlook

We maintain our positive view on the bank with a TP of Rs682, valuing it at 1.1x P/ABV on its FY22e book.