Geojit has given Buy recommendation for IndusInd Bank with a target price of Rs. 1137 in its research report issued on Aug 02, 2021
Geojit’s research report on IndusInd Bank
IndusInd Bank (IIB), a part of the Hinduja Group, provides loans for vehicles, property, etc. in its consumer finance division, while the corporate banking division offers a wide range of products to SMEs and large enterprises. For Q1FY22 standalone, NII income reached Rs. 3,564cr (7.7% YoY, 0.8% QoQ) with NIM of 4.06% (-22bps YoY, -7bps QoQ). CASA ratio reached 42.0% (vs 41.7% in Q4FY21). Loan book stood at Rs. 210,727cr (-0.8% QoQ), Deposits grew to Rs. 267,233cr (4.3% QoQ). GNPA/NNPA climbed to 2.88%/0.84% (vs. 2.67%/0.69% in Q4FY21) respectively. The interest spreads are expected to improve over long-term due to higher yields from advances. Also, the bank is well capitalised to handle any stress from loan losses or moderate asset quality deterioration.
Hence we retain our rating to BUY with a revised target price of Rs. 1,137 using 1.6x FY23.