Shares of IndusInd Bank were the top Sensex gainers today after international brokerage Jefferies said it saw a 23 per cent upside in the stock from the current market price. Jefferies has assigned a target price of Rs 1,330 for the shares of the private sector lender. IndusInd Bank stock gained 2.49 per cent intraday to Rs 1,097.6 against the previous close of Rs 1,070.95 on BSE.
IndusInd Bank shares were trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
In a year, the stock of IndusInd Bank has gained 8.19 per cent and risen 22.5 per cent in 2022. In a month, the stock has gained 15.34 per cent.
Total 0.60 lakh shares of the firm changed hands amounting to a turnover of Rs 6.54 crore on BSE. The market cap of the bank rose to Rs 84,461 crore. The brokerage has a buy rating on the stock.
New initiatives on liabilities, corporate and rural banking can turnaround return on asset, said Jefferies. It also sees more improvement in retail deposit franchise for the lender, said the brokerage. Net interest margin in the June quarter was at an 8-year high while return ratios were best in 10 quarters.
The private sector lender reported a 64.4 per cent year-on-year (YoY) rise in net profit in Q1. Net profit rose to Rs 1,603 crore against profit of Rs 975 crore in the year-ago period.
Net interest income climbed 15.8 per cent to Rs 4,125 crore in Q1 against Rs 3,563.7 crore in the same period last year.
Interest earned rose 8 per cent to Rs 8,182 crore in Q1 against Rs 7,575 crore in the same quarter last fiscal. Its June-quarter provisions and contingencies fell to Rs 1,251 crore in Q1FY23 against Rs 1,779 crore in Q1FY22.
The bank reported a 12 per cent rise in other income to Rs 1,932 crore in Q1 against Rs 1,723 crore for the corresponding quarter of the previous year.
In a related development, IndusInd Bank has announced a strategic partnership with Rupyy - a new age digital lending platform offering 100 per cent paperless loan processing. Rupyy is a fintech arm of the Jaipur based, Girnarsoft Pvt Ltd (which houses brands like CarDekho, BikeDekho, Zigwheels,Powerdrift etc).
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