First, among the new generation bank in India, IndusInd Bank offers commercial, transactional, and electronic banking products and services.The bank has over 5000 distribution points, 1911 branches and a network of 205 crore customers. The bank was recognised for its cutting-edge money transfer product and services at the 2019 TIMES NOW India Digital Awards.
Following the strategic merger of Bharat Financial Inclusion Limited and IndusInd Bank in 2020, the bank could service 22.2 million customers. The bank has formed a strategic collaboration with Religare Securities to provide customers with a value-added savings account-linked package. As a result, one saving would include a depositor account, an internet trading account, and a traditional savings account.
IndusInd Bank’s asset mix is diverse, with the vehicle finance market accounting for about 26% of total loans.The Indusind Bank share price at the time of writing the article is Rs. 1142.10, and its market capitalisation stands at Rs. 88,552.13 crore.IndusInd Bank announced its Q2FY23 quarterly results, highlights of which are as follows:
- Net interest income grew by 18% YoY to Rs. 4302 crore.
- Net interest margin grew to 4.24%.
- Net profit grew by 57% YoY to Rs.1805 crore.
- Deposits increased by 15% YoY, from Rs.2,75,288 crore to Rs.3,15,532 crore, while CASA increased by 15% YoY.
- Gross and net NPA ratios increased to 2.11% and 0.61%, respectively.
- CRAR was 18.01% on September 30, 2022, up from 17.37%.
IndusInd Bank shows a bullish outlook as it has been forming a higher base and maintaining above the breakout zone of a four-year downward slanting trend line along with a long-term 200-week exponential moving average, which has contributed to a notable increase in the stock’s relative strength rank according to our proprietary model.
The bank has also absorbed the negative news prevalent in the market due to global scenarios. It is expected that the share will be able to endure its performance going forward.The stock has been developing a higher base after retracement progressed more quickly, fully retracing the previous eight months’ drop in just three months, demonstrating a stable price structure.
The recent quarter’s performance has been quite good, with loans growing at 17.7% YoY and 3.7% QoQ to Rs. 2.47 lakh crore. The growth momentum picked up quickly. The bank is well-positioned to drive growth and record a solid margin trajectory, focusing on new growth engines, investment in the retail franchise, and the gradual elimination of liabilities.
It is anticipated that a healthy provision buffer of 3.4% and a focus on collections would keep the cost of credit at normalized levels in the future, improving RoA.
Conclusion
The Indusind Bank share price has shown a strong performance and thus can be a good buy option now.