IndusInd Bank jumps to 52-week high on robust Q1 business update

Shares of IndusInd Bank rose over 2 percent and hit a 52-week high of Rs 1,400.90 in early trade on July 5 buoyed by the lender’s solid business updates for the April-June quarter.

During the first quarter of FY24, the lender recorded a 21 percent rise in net advances to Rs 3.01 lakh crore as against  Rs 2.47 lakh crore in the same quarter last fiscal. On a sequential basis, advances increased 4 percent.

Deposits also grew 15 percent on year to Rs 3.47 lakh crore and 3 percent on sequential basis. Retail deposits and deposits from small business customers amounted to Rs 1.5 lakh crore as of June 30, as compared to Rs 1.4 lakh crore as of March 31.

Moreover, the lender’s CASA (current account and savings account) ratio slipped to 39.9 percent in Q1, its lowest is 24 quarters, from 43.2 percent in the year ago period.

At 09.29 am, shares of IndusInd Bank were trading 2.3 percent higher at Rs 1,399 on the National Stock Exchange.

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Shares of the lender had also hit a 52-week high on July 4 after the bank’s board granted approval for the promoter, IndusInd International Holdings Limited (IIHL), to raise its stake in IndusInd Bank.

IIHL announced on July 4 that its board had approved an appraisal of up to $1.5 billion, allowing it to increase its stake in IndusInd Bank from the existing 15 percent to 26 percent. This move is aimed at providing financial support for the acquisition of Reliance Capital.

Meanwhile, the lender also all due payments from Zee Entertainment Enterprises on June 30, following which the National Company Law Appellate Tribunal (NCLAT) disposed of the lender’s appeal for an insolvency against the Zee.

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