The private banking sector in India has risen tremendously, accounting for around 30% of overall banking industry assets. As of 2023, private banks recorded a total net profit of over Rs 1.5 trillion, owing to technological developments, customer-centric services, and an increasing network of over 28,000 branches across the country.
With a market capitalization of Rs 1.16 lakh crore, the shares of IndusInd Bank Ltd were trading at Rs 1499.00 per share, increased around 1.05 percent as compared to the previous closing price of Rs 1,483.45 apiece.
Citi, a well-known brokerage firm globally has maintained a buy call on the bank stock with a target price of Rs 2,010 apiece, indicating a potential upside of 34 percent from Thursday’s price of Rs 1,479.70 per share, Moneycontrol reported.
Moreover, management retains confidence in growing loans by 18-20 percent over FY25-26. Citi mentioned that growth is predicted to be driven by steady increases in retail, a balanced vehicle mix, and the expansion of new enterprises. Sustained traction in MFI is also predicted to stimulate development moving forward.
Furthermore, the brokerage firm estimates that over FY25-26 the bank will deliver 17 percent loan growth and see a steady margin with 1.2 percent credit cost and over 1.8 percent RoA.
Examining the company’s financial performance, revenue jumped by 21 percent from Rs 10,021 crore in Q4FY23 to Rs 10,021 crore in Q4FY24, and during the same time frame, net profit increased by 15 percent from Rs 2,041 crore to Rs 2,347 crore.
The company’s asset-quality measures improved throughout the quarter, with gross non-performing assets down to 1.92 percent in Q4FY24 from 1.98 percent the previous quarter. The net NPA ratio fell to 0.57 percent in Q4FY24 from 0.58 percent in Q3FY24.
IndusInd Bank Limited (the Bank) provides financial services. The Bank provides a variety of goods and services to people and businesses, including microfinance, personal loans, personal and commercial vehicle loans, credit cards, and small to medium enterprise (SME) loans.
Written by:- Abhishek Singh
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