IndusInd Bank - The RBI Approves Re-Appointment Of MD, CEO For Two Years: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.The Reserve Bank of India approved the re-appointment of Mr. Sumant Kathpalia as the Managing Director and Chief Executive Officer of IndusInd Bank Ltd. for a period of two years, effective March 24, 2023, after his current term ends on March 23, 2023. There was uncertainty around his extension and all sorts of conjectures were made with respect to the tenure that will get approved by the central bank. We note that there had been instances in the past where despite a shorter term approval, the MD and CEOs of other banks had been able to secure a three- year regular term during subsequent renewals. IndusInd Bank’s stock price has been under pressure not only due to the macro uncertainty but also because of the clarity around the extension. We thus believe the RBI approval will now shift the focus to the fundamental performance of the bank.IndusInd Bank has been demonstrating a healthy improvement in operating performance fueled by a pick-up in loan growth, strengthening liability franchise and improving asset quality. We estimate IndusInd Bank to deliver 20% loan compound annual growth rate over FY23-25..Click on the attachment to read the full report:.Bank of Baroda - Prioritising Profitable Growth; Retail Segment To Be Key Growth Driver: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

IndusInd Bank - The RBI Approves Re-Appointment Of MD, CEO For Two Years: Motilal Oswal

Focus to shift on fundamental performance; estimate FY25 RoE at 18%.

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