IndusInd Bank’s shares experienced a 2 percent decline in intra-day trading on April 26, despite the private sector lender posting a 15 percent increase in its net profit for the March quarter (Q4FY24). The bank reported a net profit of ₹2,349 crore in Q4FY24, compared to ₹2,043 crore in the same period last year.
Additionally, net loans saw an 18 percent growth, surpassing the 14 percent growth in deposits, while net interest income rose by 15 percent to ₹5,376 crore. The bank’s gross non-performing assets (GNPAs) decreased to 1.92 percent, and net NPAs stood at 0.57 percent for Q4FY24.
Despite the positive earnings, some brokerages lowered their EPS (earnings per share) estimates for the bank. HSBC maintained a ‘buy’ rating with a target price of ₹2,020, citing a reduction in the slippage ratio as a major positive factor.
However, it slightly lowered its EPS estimates by 2–3.5 percent for fiscal years 2025–27 due to increases in operating expenses. Emkay also retained its ‘buy’ call with a target price of ₹2,000, noting a slight miss on earnings but highlighting the bank’s focus on diversifying its portfolio and maintaining medium-term credit growth guidance.
Jefferies maintained an ‘overweight’ rating with a target price of ₹1,925, emphasizing the bank’s improved asset quality and strong growth in retail deposits and loans. Motilal Oswal also maintained a ‘buy’ call with a target price of ₹1,850, highlighting the bank’s stable asset quality ratios and controlled provisions, along with a healthy earnings outlook.
Nuvama reiterated a ‘buy’ call with a price target of ₹1,800, emphasizing the improving asset quality of IndusInd Bank. The brokerage also noted the bank’s clarification regarding investments by its promoter holding company, stating that they are independent of the bank’s operations.
Overall, while IndusInd Bank reported positive financial results, some brokerages adjusted their EPS estimates due to various factors such as operating expenses and growth moderation. However, the general sentiment among analysts remains optimistic, with most maintaining a positive outlook on the bank’s performance and growth prospects.
