IndusInd Bank – Revival?

IndusInd Bank Limited is an Indian financial service company headquartered in Mumbai (Maharashtra). The bank offers commercial, transactional and electronic banking products and services. IndusInd Bank was inaugurated in April 1994 by then Union Finance Minister Manmohan Singh. IndusInd Bank is the first among the new-generation private banks in India.

Quarterly Growth Walkthrough

IndusInd Bank registered a standalone net profit of ₹2,040 crore for the quarter ended March which is a brilliant growth of about 50% over the same quarter with a profit of ₹1,361 crore from the last year.

The bank’s net interest income summarized up to ₹4,669 crore which is up by 17% over the last year. The total income has risen by 16% Year-on-Year to ₹6,823 crore and its other income risen by 13% Year-on-Year to ₹2,514 crore.

Provisions (excluding the taxes and contingencies) have reduced by 29% to ₹1,030 crore during the last quarter which had been ₹1,461 crore over the last quarter of the previous year.

The bank’s gross and net non-performing assets (NPAs) are slowly fading. Hence this quarter has paved the way for enhanced asset quality. The gross NPA ratio has fallen to 1.98% from 2.06% sequentially and 2.27% Year-on-Year.

Net NPAs have slightly improved at 0.59% as compared to 0.62% sequentially and 0.64% Year-on-Year.

Declaration of Dividend

“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%), subject to approval of the Shareholders at the ensuing Annual (General Meeting),” reported by IndusInd Bank through a BSE filing.

Head reinstated

“Further to our letter dated March 10 and March 11, 2023 regarding re-appointment of Mr. Sumant Kathpalia, Managing Director & CEO of the Bank, this is to inform that the Board of Directors of the Bank, at its meeting held today has decided to seek approval of Shareholders of the Bank by means of an Ordinary Resolution through Postal Ballot for re-appointment of Mr. Sumant Kathpalia,” said IndusInd Bank through a BSE filing.

Technical Analysis

IndusIndBank Weekly Candlestick Chart on Sharekhan’s TradeTiger

IndusInd Bank stock price may soon reach the 61.8% retracement level at Rs 1350. Considering the strong quarter, the price may break over this level and convert into a bullish trend. This stock has been underperforming and has not recovered despite the jump post the pandemic. The weekly MFI had been below 30 points for an extended duration of many weeks. The current MFI still shows that the stock is relatively oversold. We may see the stock rising up to its lifetime high of Rs 2038 in the mid-term. If the stock fails to break over its 61.8% retracement level, the stock can be shorted with proper risk management.

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