IndusInd Bank shares surged nearly 4 per cent on Wednesday’s early trade after the company reported 32.5 per cent growth in its consolidated net profit in the April-June quarter.
IndusInd Bank reported a 30 per cent growth in its consolidated net profit in the April-June quarter at Rs 2,124.50 crore, on the back of core income growth and lower bad loan provisions
IndusInd Bank shares surged nearly 4 per cent on Wednesday’s early trade after the company reported 32.5 per cent growth in its consolidated net profit in the April-June quarter.
The stock rallied 3.81 per cent to hit its 52-week high of Rs 1,443.35 on the Bombay Stock Exchange (BSE). It gained 3.82 per cent to hit its 52-week high of Rs 1,443.40 at the NSE.
At 12:05 PM, the stock was trading 2.95 per cent higher at Rs 1,417.45 on the NSE.
On Tuesday, the private lender reported a 32.5 per cent growth in its consolidated net profit in the April-June quarter at Rs 2,124.50 crore, on the back of core income growth and lower bad loan provisions.
In the first quarter FY24, IndusInd Bank’s core net interest income rose 18 per cent to Rs 4,867 crore on a 22 per cent increase in advances and a 0.08 per cent expansion in the net interest margin to 4.29 per cent. The other income increased 14 per cent to Rs 2,210 crore and the overall deposits grew 15 per cent.
The overall provisions declined to Rs 991 crore against Rs 1,251 crore in the year-ago period.
In terms of asset quality, the gross non-performing assets (GNPA) ratio improved to 1.94 per cent, as compared to 2.53 per cent in the corresponding quarter of last year and 1.98 per cent in the previous quarter.
Several brokerages cheered for the bank’s strong financials, which helped boost investor sentiment. Most brokerages raised their price targets for the stock.
International brokerage firm Morgan Stanley revised the price target for the stock to Rs 1,800 and maintained its ‘overweight’ rating for IndusInd Bank. With a ‘buy’ tag, Citi raised the target price for the stock to Rs 1,630. It remains positive for the bank’s consistent earnings with a better retail deposit mix and easing credit costs.
JP Morgan also raised the price target to Rs 1,250 and gave a ‘neutral’ rating for the IndusInd Bank stock. It expects the lender’s deposit rates to peak in Q2.
Domestic brokerage firm Navuma Institutional Equities upgraded the stock to a ‘buy’ rating with a price target of Rs 1,620.