IndusInd Bank Share Rising Today: Shares of IndusInd Bank rose over 5 per cent on May 8 morning after brokerages reaffirmed their faith in the private lender following a selloff on May 5 in reaction to the resignation of the risk officer.
IndusInd Bank’s stock opened at Rs 1080 on the last day of trading and closed at Rs 1074.05. During the day, the high and low were recorded at Rs 1134.85 and Rs 1080 respectively. The bank’s market capitalization was Rs 87,672.28 crore. The 52-week high and low was recorded at Rs 1275.25 and Rs 763.75 respectively. On the Bombay Stock Exchange, 201,318 shares were traded.
The IndusInd Bank stock has lost 8 percent since the start of 2023, underperforming the sectoral benchmark Bank Nifty, which has given a return of 0.06 percent during the same duration.
The stock doesn’t fare too well on a five-year basis as well. IndusInd bank has lost 40.63 per cent of its value over the last 5 years. The Bank Nifty, on the other hand, has given a return of 63.45 per cent during the period.
IndusInd Bank Q4 Performance
Private sector lender reported a 46 per cent rise in net profit for the quarter ended March 2023 at Rs 2043 crore against the net profit of Rs 1400 crore in the March quarter of last fiscal. Interest income climbed 27 per cent to Rs 10020.71 crore in the last quarter against Rs 7859.89 crore for the March 2022 quarter.
However, gross NPAs rose to 5,826.27 crore in Q4 against Rs 5517.15 crore in the March 2022 quarter. In terms of percentage, gross NPAs stood at 1.98 per cent in the last quarter against estimates of 1.94 per cent.
The Board also recommended payment of dividend at the rate of Rs 14 per equity share of Rs 10/each of the Bank, for the financial Year 2022-23 (140 per cent), subject to approval of the shareholders at the Annual General Meeting.
Net NPAs rose to Rs 1714.96 crore in Q4 against Rs 1529.83 crore in the corresponding quarter of the previous fiscal. Debt to equity ratoio improved to 0.73 in Q4 against 0.76 in the fourth quarter of the previous fiscal.
The bank held contingency provision of Rs 1,900 crore as on March 31, 2023. During the quarter and year ended March 31,2023, the bank allotted 4,80,154 shares and 12,32,035 shares respectively, pursuant to the exercise of stock options by certain employees.
Meanwhile, shares of IndusInd Bank fell 2.23 per cent to Rs 1092.1 after the Q4 earnings announcements. It closed at Rs 1115.90 in the previous session on BSE. The stock of the lender has lost 9.66 per cent this year and risen 15 per cent in the last one year. Total 2.55 lakh shares of the firm changed hands amounting to a turnover of Rs 28.48 crore on BSE. Market cap of the bank fell to Rs 85,437 crore.
What Do Brokerages Say?
Morgan Stanley is “overweight” on the IndusInd Bank stock with a target price of Rs 1,525 a share. The firm believes that management changes are business as usual and is unlikely to have any significant impact on bank earnings.
Jefferies has a “buy” call on the stock with a target price of Rs 1,550 per share. The firm does not see the resignation of the chief risk officer warranting the 5 percent correction that was seen on May 5. The bank has also reappointed its chief compliance officer as assurance officer.
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