Buy IndusInd Bank; target of Rs 1400: Motilal Oswal

In the planning cycle-3, which concludes in FY17, IIB’s key focus is to scale up its operations using a 3D strategy: Dominate (to be among the top three banks in home markets), Differentiate (extensive use of technology and cross-sell), and Diversify (new products). Strong core profitability (3% of average assets v/s private banks’ average of 2.5% and HDFCB’s 2.7%), improving CASA ratio (best among mid-sized private banks), and healthy return ratios (1.9%+ RoA and 16-18% RoE) are key positives. Buy; our target price is INR 1,400 (3.4x September 2018E BV). For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.