Shares of IndusInd Bank gained over 2% in early trade today ahead of the lender’s Q4 and the fiscal earnings set to be announced today. IndusInd Bank shares rose 2.05% to Rs 1138.80 today against the previous close of Rs 1115.90 on BSE. The stock of the lender has lost 8.31% this year and risen 16.68% in the last one year. Total 0.22 lakh shares of the firm changed hands amounting to a turnover of Rs 2.82 crore on BSE. Market cap of the bank rose to Rs 87,365 crore.
In terms of technicals, the relative strength index (RSI) of IndusInd Bank stands at 56.7, signaling it's trading neither in the overbought zone nor in the oversold zone. The banking stock has a one-year beta of 1.4, indicating very high volatility during the period. IndusInd Bank shares are trading higher than the 5 day, 20 day, 50 day and 200 day moving averages but lower than 100 day moving averages.
The stock hit a 52-week high of Rs 1275.25 on September 20, 2022 and a 52-week low of Rs 763.75 on June 23, 2022.
Nuvama Institutional Equities sees a 55% YoY rise in net profit to Rs 2,120 crore in Q4 compared with Rs 1,360 crore in the year-ago quarter.
Net interest income (NII) for the March quarter may rise 18.1 per cent YoY to Rs 4,710 crore from Rs 3,990 crore YoY. Net interest margins (NIM) are seen at 4.28 per cent against 4.27 per cent in December and 4.20 per cent in the year-ago quarter. Slippages as percentage of lagged loans are seen at 2.47 per cent against 3.85 per cent YoY.
Meanwhile, brokerage Jefferies in March-end said the banking stock was the top pick in the sector. It pegged an upside of 55% and assigned a target price of Rs 1,550 on the banking stock.
On March 14, brokerage Sharekhan gave a target of Rs 1400 for the private sector lender. That time, the market price of IndusInd Bank was Rs 1072.2.
“IndusInd Bank (IIB) has recovered from its past challenges and has been progressing well on guided lines. Strong growth potential from a well-diversified loan book with a rising share of retail loans along with healthy capital ratios gives loan growth visibility. The bank is also speeding up its efforts to improve the retail liability franchise, which is a key positive. Retail deposits have gone up from 26% in FY2019 to 42% in 9MFY2023. Increasing share of retail deposits has been a key focus area for the bank, with 87% of incremental deposits over FY2020-9MFY2023 coming from retail deposits and CASA,” said the brokerage.
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