IndusInd Bank trades higher as Q3 advances grow 20%

Shares of IndusInd Bank rose nearly a percent in early trade on January 4 after the private sector lender reported a 20 percent growth in the third quarter advances and a 13 percent surge in deposits.

At 9.15 am the IndusInd Bank stock was trading at Rs 1611.24 on NSE.

Induslnd Bank saw a 13 percent year-on-year increase in deposits, which grew to Rs 3.69 lakh crore, which was also 3 percent higher from the previous quarter. Advances at Rs 3.27 lakh crore were up 4 percent sequentially and 20 percent year-on-year, the bank said in a business update on January 2.

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The CASA ratio, however, dropped to 38.5 percent in Q3FY24 against 42 percent in the year-ago period and 39.4 percent in the previous quarter. Retail deposits and deposits from small business customers amounted to Rs 1,65,353 crore, up from Rs 1,57,187 crore in the previous quarter.

Here is what brokerages have to say on the Q3 update 

Morgan Stanley has an “overweight” recommendation for IndusInd Bank, setting a target of Rs 1,850 a share. The bank’s loan growth slowed down slightly on a quarterly basis, dropping from 4.7 percent to 3.6 percent, it said on a research report. However, on a yearly basis, the loan growth remains robust, with a solid 20 percent compared to the previous year’s 21 percent.

Retail deposits too were positive, as growth improved to 5.2 percent from the previous quarter’s 4.3 percent, amounting to an approximately 20 percent increase compared to the same time last year. Overall, Morgan Stanley sees potential in IndusInd Bank, indicating a positive outlook for investors.

Brokerage firm Motilal Oswal is also bullish on the stock and has a “buy” call with a target price of Rs 1,700.

The stock has given a return of 15.97 percent over the past six months against a gain of 5.31 percent for the Nifty.

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