IndusInd Bank Ltd.'s net advances rose 21% year-on-year to Rs 3.15 lakh crore in the quarter ended September, according to the provisional figures for the September quarter that were released on Sunday. Deposits also rose 14% year-on-year to Rs 3.6 lakh crore during the same period.
Retail and small business customer deposits rose 4% to Rs 1.57 lakh crore as of Sept. 30. The CASA ratio moderated by 50 basis points to 39.4%.
Jefferies Financial Group Inc. said the loan growth of 21% was a tad higher than its estimate of 20% for the current financial year.
The brokerage expects the margin to be stable as growth is led by retail and most of the rate hikes have passed through profit and loss already.
Jefferies views the valuations as attractive, reiterating IndusInd Bank as among its top picks. It set the target price at Rs 1,750, implying an upside of 24% to Friday's closing price.
Shares of IndusInd Bank rose 0.57% during the day to 1,436.95 apiece. It pared gains to trade 0.43% higher at Rs 1,435.05 compared to a 0.53% decline in the benchmark NSE Nifty 50 as of 11.34 a.m.
Forty-four out of the 48 analysts tracking IndusInd Bank maintain a 'buy' rating on the stock, three recommend a 'hold', and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 15.7%.
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