IndusInd Bank Ltd up by 14.75 percent: Market Update By Espresso


Espresso shot of the day – IndusInd Bank Ltd up by 14.75 percent

February 01, 2021
Espresso shot of the day – IndusInd Bank Ltd up by 14.75 percent

INDUSIND BANK LTD 971.10 (+14.75%)   BSE – INE095A01012| 1st FEB 2021

IndusInd Bank Limited is a universal bank with a widespread banking footprint with over 2.5 crores customers, over 5,000 distribution points and nearly 2,000 branches across the country. With ‘Sustainability’ at the core, they offer a wide array of products and services for individuals and corporates including microfinance, personal loans, personal and commercial vehicles loans, credit cards, SME loans. They are also a preferred banking partner for various Government entities, PSUs and large corporates.

Recent Drivers

  • IndusInd Bank Limited reported a standalone net profit of Rs 852.76 crores for the quarter that ended December 2020.
  • Net NPA came at Rs 464.2 crores against Rs 1,055.8 crores in Q2 FY21. It stood at 0.22% of the total assets against 0.52% in Q2 FY21.
  • The bank said the growth momentum is getting traction and the disbursements in the vehicle finance and microfinance segments are near pre-COVID levels.
  • The private lender is looking to grow its loan book by 15-18% YoY for the next two financial years under its fifth planning cycle.
  • IndusInd Bank Limited expects about 2.2% or Rs 4500 crores of loans to be restructured even as it has increased provisions to deal with possible non performing assets in the future.
  • The bank said it had approved restructuring for about 60 basis points of its total loan book of Rs 2.07 lakh crores while another 1.2% of the loan book is in the pipeline for restructuring.
  • Fee income also fell 8% to Rs 1389 crores largely due to a 62% fall in investment banking fees and a 22% drop in fees on loans as disbursements remained muted.
  • Analysts at BofA Securities have "turned positive" on the Indian banking sector, and have upgraded Axis Bank, IndusInd Bank, and State Bank of India (SBI) on a "surprisingly" resilient asset quality outlook, and reasonable valuations.
  • UBS Principal Capital Asia Ltd on Friday sold nearly 40 lakhs shares of IndusInd Bank Limited worth over Rs 366 crores through an open market transaction. The shares of IndusInd Bank were purchased by BofA Securities Europe SA at the same price.
  • In December, the promoters of IndusInd Bank have been given a one-month extension until 4 February, 2021, by SEBI, for subscription to the warrants. Induslnd International Holdings Limited and Induslnd Limited, the promoters, have also underlined their unstinted support to the bank’s capital.
  • IndusInd Bank Limited in partnership with Mastercard has announced the launch of its first metal credit card - ‘PIONEER Heritage’ for the Bank’s ultra-high net worth segment of customers.
( Sources: Moneycontrol, BSE, Business Standard, Business Line, Economics Times, Zee Business )

Technical Force*

  • S&P BSE 500 month till date gain up by 2.31%| BANKEX month till date gain up by 4.63%
  • Touched upper circuit Rs 973 15
  • Spurt in volume by more than 2.35 times compares to previous volume.
  • Stock price has jumped more than 100% in one year low level – 235.55, 24 March 20
  • Daily RSI(14) is above central line today
  • 52- week high – 1345.95| 52 - week low – 235.6

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Some Key Ratios (Source: BSE)

Market Cap: 73,539.32 crores

PE: 28.32


ROE%: 5.72

Prev. Close: 846.25

* Chart And Technical Force data taken from the Binge desktop app.

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Chandresh Khona
by Chandresh Khona

Product Offerings Head

A teacher, writer, travel buff and now Espresso's Product Offerings Head. Ten years here has allowed me to lead the digital team at Sharekhan. My true passion lies in stock market charts.