MUMBAI - IndusInd Bank has announced a significant increase in net interest income (NII), and a robust surge in net profit of 17.3% for the December quarter. This performance comes even as the bank navigates increased slippages across various sectors. Looking ahead, IndusInd Bank is targeting an ambitious loan growth rate of 18-23% from FY23 to FY26 and is expecting a normalization of slippages in the near future.
Brokerage firms have expressed a positive stance on IndusInd Bank's stock prospects following the release of these financial results. Motilal Oswal has reiterated a 'BUY' rating on the bank's shares, setting a target price of Rs 1,900. This endorsement is echoed by Nuvama Institutional Equities, which has placed a target price of Rs 1,860 on the stock, with both brokerages citing the bank's strong loan growth as a key factor.
Additionally, Macquarie maintains an 'Outperform' rating with a target price matching that of Motilal Oswal at Rs 1,900. However, Macquarie has also noted concerns regarding the higher slippages and the drawdowns of the provision buffer, indicating areas that the bank may need to monitor and manage carefully in the upcoming periods.
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