IndusInd Bank jumps 2% post key appointments at top management level

Shares of IndusInd Bank jumped 2 percent in early trade on June 30, after the company made key appointments at the top management level. At 10:52 am, the IndusInd Bank stock was trading 1.92 percent higher at Rs 1,359.45 on NSE.

Details of the appointments

The board members of the bank, as per a filing with the BSE on June 28, approved an appointment of Vivek Bajpeyi as the chief risk officer (CRO) of the private sector lender with effect from June 28, 2023 till September 30, 2025. Further, the board appointed Arun Khurana, who is currently the deputy CEO, as an executive director i.e. whole-time director of IndusInd Bank for three years.

The notification further stated that, “Mr. Bajpeyi has over 30 years of banking experience in India and Indonesia, which includes leadership roles in credit & risk management, corporate & Investment banking and distressed asset management with global and Indian financial institutions.”

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Brokerage Views

Brokerage firm ICICI direct had given a ‘buy’ rating on the IndusInd Bank stock with a target price of Rs 1,450 in a report dated April 25. Thus, signifying a further upside of nearly 10 percent from the current market price.

On the Q4 results of the bank, the firm stated that, “IndusInd Bank reported a steady set of numbers in line with our estimates. NII growth was at 17.2 percent YoY, 3.9 percent QoQ to Rs 4,669 crore, driven by strong business growth and steady margins (QoQ). Margins were at 4.28 percent (expanded 8 bps YoY, steady QoQ). Other income was up 13 percent YoY to Rs 2,154 crore, driven by healthy growth of 27 percent YoY, 8 percent QoQ in core fee income at Rs 2,087 crore.”

The brokerage firm Antique Stock broking has maintained a ‘Buy’ rating on the stock. They have raised its earnings estimates by 3 to 4 percent for FY24 and FY25. They have also raised the target price to Rs 1,525 per share from Rs 1,460 earlier, implying an upside of 17 percent from the current market price of Rs 1,360.

Stock Performance

IndusInd Bank stock has given a return of 10.92 percent over the last six months. Thus, outperforming the benchmark Nifty Bank index which has given a return of 3.07 percent over the same duration.

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