IndusInd Bank shares advanced as much as 1.92 per cent in early trade on Thursday after the private sector lender on Wednesday reported 25.75 per cent jump in its net profit at Rs 704.26 crore for second quarter ended September 30, 2016 as compared to Rs 560.04 crore for the same quarter in the previous year. Total income of the bank increased by 23.97 per cent at Rs 4,439.72 crore for Q2FY17 as compared Rs 3,581.31 crore for the corresponding quarter previous year.
At 9.40 am, shares of IndusInd Bank were trading 0.96 per cent up at Rs 1233.25. The scrip opened the day at Rs 1244 and had touched a high and low of Rs 1245 and Rs 1224.30, respectively, in trade so far. BSE Sensex was down 220.86 points at 27,861.48.
Asset quality of IndusInd Bank remained stable for yet another quarter with gross non-performing assets (GNPAs) at 0.90 per cent vs 0.91 per cent on quarter-on-quarter basis (QoQ), while net NPAs also remained stable at 0.37 per cent vs 0.38 per cent qoq. In absolute terms GNPAs went up by only 4 per cent to Rs 899 crore, while NNPAs stood at Rs 369 crore up by 3.9 per cent. For the quarter ended September 2016, provisions and contingencies of the lender increased by 35.29 per cent yoy to Rs 213.88 crore from Rs 158.08 crore in the same quarter last year.
Post Q2 results of IndusInd Bank, Religare Capital Markets in a research note said, “We reiterate ‘Buy’ on IndusInd Bank shares with a September 2017 target price of Rs 1,350, given the bank’s strong earnings growth, improving liability franchise and stable asset quality.”
Japanese brokerage firm Nomura also has ‘Buy’ rating on IndusInd Bank shares with a target price of Rs 1,400.