IndusInd Bank Stock Jumps Over 3% To Hit 52-Week High On Positive Q1 Business Update

IndusInd Banks shares rallied over 3 per cent to hit a 52-week high of Rs 1,413.55 per share on the BSE after the company reported a strong business update for the April to June quarter for FY24.

The private lender’s net advances increased 21 per cent to Rs 3,01,041 crore in the quarter ended June 2023, compared to Rs 2,47,960 crore in the corresponding quarter last year. Sequentially, advances grew 4 per cent compared to Rs 2,89,924 crore in the quarter ending March 2023.

As of June 2023, the bank’s deposits stood at Rs 3,47,356 crore, witnessing a rise of 15 per cent from Rs 3,03,078 crore, year-on-year, and a growth of 3 per cent from Rs 3,36,438 crore, quarter-on-quarter.

Retail deposits and deposits from small business customers were at Rs 1,50,691 crore as of June 30, 2023, as against Rs 1,43,021 crore in the previous quarter, the bank said in a stock exchange filing.

At 1:30 pm, shares of IndusInd Bank were trading 2.29 per cent higher at 1,398.70 on the National Stock Exchange (NSE).

The lenders’ stock had also touched a 52-week high on July 4, when the bank’s board granted approval for the promoter, IndusInd International Holdings Limited (IIHL), to raise its stake in IndusInd Bank.

On 4 July, IIHL said that its board had approved an appraisal of up to $1.5 billion, allowing it to increase its stake in IndusInd Bank from the current 15 per cent to 26 per cent. The move aims to provide funding for the acquisition of Reliance Capital.

IndusInd Bank’s shares have surged over 71 per cent in the last one year period.

According to brokerage firm Prabhudas Lilladhar Pvt Ltd, IndusInd Bank’s loan growth is likely to be a tad higher to system and around 3 per cent quarter on quarter.

"Retail deposit accretion remains a key and granular deposits have been inching up with share of 43.4% as of Q1'23 vs 42.5% in Q4'23 and 41.0% in Q1'23, which is a positive," said Gaurav Jani, Research Analyst, Prabhudas Lilladhar Pvt Ltd.

The firm has a buy rating on the stock with a target price (TP) of Rs 1,350.