Credit Suisse has maintained an Outperform rating on private lender IndusInd Bank with a target price of Rs 980 per share. It also expects the bank's return on equity to improve to 13 percent.

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The brokerage stated that post the recent warrant conversion by the promoters of the bank, its CET was strong at 15.7 percent.

Credit Suisse also noted that IndusInd Bank's management did not expect capital for the next 12-18 months even as growth picks up. Also, the management is interested in venturing into para banking.

Global credit rating agency Moody’s Investors Service, on Monday, revised upwards its outlook on IndusInd Bank to ‘stable’ from ‘negative’ while affirming its rating, citing the private sector lender’s strong capital and core profitability.

The change in the outlook is driven by improvement in its funding and capital, and the marginal hit on asset quality during the pandemic, Moody’s said in a note.

At 12:35 pm, the share price of IndusInd Bank was trading 1.28 percent higher at Rs 980.30 apiece on the BSE.

(Edited by : Ankit Gohel)