Brokerages have raised target price up to Rs 1,800 on IndusInd Bank after the lender reported 32.5 percent rise in net profit at Rs 2,123.6 crore in the quarter-ended June. Shares of the lender too surged 4 percent to a 52-week high of Rs 1,443.40 in early trade on July 19 led by this healthy earnings for the April-June quarter.

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At the time of writing this report, IndusInd Bank was trading 3.2 percent higher at Rs 1,435 on the National Stock Exchange (NSE).

Here's a look at how different brokerage houses are seeing IndusInd Bank's numbers:

Citi

CIti has maintained a 'buy' rating on IndusInd Bank with a target of Rs 1,630 per share. It said that the stability was demonstrated again along with robust advances growth.

"Management is confident of planning cycle-6 strategy targeted towards 18-23 percent credit growth," it added.

Goldman Sachs

Goldman Sachs has maintained a 'buy' rating on IndusInd Bank with a target of Rs 1,681 per share. It said the slight uptick in Net Interest Margin (NIM) was offset by higher cost-to-income ratio. The NIM for Q1 of FY24 stood at 4.29 percent as against 4.21 percent for Q1 of FY 23 and 4.28 percent for Q4 of FY23, the lender said in a regulatory filing.

Morgan Stanley

Morgan Stanley has maintained an 'overweight' rating on IndusInd Bank with a target of Rs 1,800 per share. It said the first quarter had a steady margin, improving growth and liquidity and easing credit costs. The brokerage further said that it sees good returns from IndusInd Bank through compounding, estimate upgrades and even re-ratings.

The firm is positive on the lender's consistent earnings with better retail deposit mix and easing credit costs.

JPMorgan

JPMorgan has, however, maintained a 'neutral' rating on IndusInd Bank with a target of Rs 1,250 per share. It said that the reserve drawdown drives an in-line result.

A look at IndusInd Bank's numbers

The net interest income (NII) stood at Rs 4,867 crore versus CNBC-TV18 poll of Rs 4,821.7 crore. Yield on assets for the lender stood at 9.60 percent for the quarter ended June 30, 2023 as against 8.35 percent for the corresponding quarter of previous year. Cost of Fund was reported at 5.31 percent as against 4.14 percent for corresponding quarter of previous year.

The bank’s operating profit, before provisions and contingencies, rose 13 percent year-on-year (YoY) to Rs 3,830 crore. Provisions for the said quarter stood at Rs 992 crore, compared with Rs 1,251 crore a year ago.

The gross non-performing assets (NPAs) ratio as a percentage of sales was reported at 1.94 percent as of June end, compared with 1.98 percent a quarter ago, and 2.35 percent a year ago. The net NPA ratio was 0.58 percent as of June end, compared to 0.59 percent a quarter ago.

First Published:Jul 19, 2023 10:18 AM IST