Jefferies sees double digit increase in bank stock, buy recommendation

On BSE, stocks Bank IndusInd is trading down 1.45 percent at $1222.75 each.

Jefferies The target shows a 23% gain taking into account Monday’s end of print.

“IndusInd Bank’s pre-Q3 2023 update shows a loan growth rate of 19% YoY / 5% QoQ, which we believe is led by an increase in retail loan growth (CV) and MFI) also offer higher margins.Deposit growth was slower at 14% YoY / 3% QoQ, with retail deposits and Casa deposits growing at 21%/18% YoY. I see the bank moving towards c.20% Lending Cagr & 2% ROA Attractive valuation at 1.5x 2024 adjusted PB. It’s among the top picks in this sector. . Please buy.” Jefferies said in its note.

The bank’s loan growth continued to maintain well as it increased by 4.6% QoQ and 4.9% YoY.

While deposit growth was good at 3% quarter-on-quarter and up 14.3%, the CASA mix fell 40 basis points quarter-on-quarter to 42%.

Retail deposits and deposits from small business customers amounted to Rs 1,37,968 as of December 31, 2022 against Rs. 1,29,990 cores as of September 30, 2022.

It has a market capitalization of $94,813.87 cores. IndusInd Bank reported a 60.4 percent increase in net profit year-on-year. $1786.72 cr for September quarter. Net profit for the corresponding quarter is $1113.53 billion VND.

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