The share price of IndusInd Bank jumped 3.5 percent on Wednesday after global brokerage house CLSA raised the target price for the stock while maintaining a bullish stance.

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The brokerage maintained a Buy call on the stock and raised the target to Rs 1,325 from Rs 1,100 per share earlier, indicating a 30 percent upside.

The stock rose as much as 3.5 percent to the day's high of Rs 1,060.45 per share on the BSE. In 2021, it has added over 16 percent.

According to the brokerage, the lender has reported a transformative journey in the last two years and has debulked corporate books and increased granularity of liabilities.

"Cyclically, the Covid-19 asset-quality hit has been less than expected as incremental corporate stress has been low across the system and the commercial vehicle (CV), microfinance (MFI) and gems portfolio has held up better than expected," the brokerage noted.

"While the liability side remains a work in progress and asset-side debulking continues, dependence on bulky fee streams has fallen in the last two years and high-yielding retail assets should support overall profitability," it said.

It also increased EPS estimates for the private bank by 3-6 percent.

For the December quarter, the bank posted a standalone net profit of Rs 852.76 crore, down 34 percent YoY. The profit figures, however, were better than the market expectations as a CNBC-TV18 poll had estimated the number to the tune of Rs 705.5 crore.

For the quarter under review, its core net interest income grew by 11 percent to Rs 3,406 crore on the back of the loan book being stable and a 0.03 percent narrowing of the net interest margin (NIM) to 4.12 percent was reported.

The bank said the gross non-performing assets ratio would have come at 2.93 percent if not for the Supreme Court's standstill order on not recognising NPAs, as against 2.18 percent in the year-ago period and 2.21 percent in September.