IndusInd Bank, supported by the Hinduja Group, has taken the place among top 5 largest private banks of India. It is a new-age bank with almost 26% of the loans being in relation to vehicle financing.
With shares attaining a 52-week high of INR 1,295, IndusInd Bank’s market capitalization surpassed INR 1 lakh crore, becoming its highest level in three years. The bank’s stock went up by almost 44% during the last 12 months. Within the course of the last 2 years, IndusInd Bank has improved its return on equity as well as its return on assets, and its profit margin along with net profit has been increasing gradually with every quarter and with every passing year.
It has become the 6th bank in the country with a valuation of more than INR 1 lakh crore. IndusInd Bank shares have spiked by more than 50.36% to this point this fiscal year. Having a market worth of 4.6 lakh crore, HDFC Bank is the nation’s most valuable bank, ahead of State Bank of India and ICICI Bank.
The January-March quarter (Q4FY23) financial results for IndusInd Bank were solid, with consistent net interest margin (NIM) and modest provisions. The consumer and business sectors both had healthy expansions and stronger expenditure, which helped the bank achieve a 21.3% year-over-year (YoY) rise in advances.
Administration announced a sixth plan cycle (FY23-26) while the results were presented on April 24th. In this cycle, they projected for a credit growth of 18-23% YoY, primarily fueled by retail (55-60% share) and pre-provisioned operating profit (PPOP) levels of 5.25-5.75%.
IndusInd Bank Outward Remittances are now available through Bajaj Markets as a result of the partnership with the bank. Individuals can transfer money overseas through the Liberalized Remittance Scheme (LRS) option.
Individuals can use this system to send money abroad in 16 different currencies, including the “Euro (EUR), Great Britain Pound (GBP), United States Dollar (USD), Canadian Dollar (CAD), Australian Dollar (AUD), New Zealand Dollar (NZD), Hong Kong Dollar (HKD), Singapore Dollar (SGD), Saudi Riyal (SAR), Arab Emirates Dirham (AED), Japanese Yen (JPY), Swiss Franc (CHF), South African Rand (ZAR), Danish Krone (DKK).”
Implementing the IndusInd Bank Outward Remittances service through Bajaj Markets is uncomplicated. Clients may send money abroad without any issues owing to the safe method. The greatest benefit is that the entire digital procedure makes certain people don’t need to personally go to a bank office. It is clear from this and the yearly increasing figures that IndusInd Bank is among the Indian banking sector’s most rapidly growing institutions.
Banking Sector on Spotlight
On May 29, since the bulk of the equities rose in value throughout the trading, bank stocks came under the spotlight. The Nifty Bank index reached a new record high for its history throughout the day of 44,483.35 points before finishing at 44,311 points. It had reached a lifetime high of 44,151.80 on December 14, 2022. Ten of the twelve components finished in green, and the remaining two in red. The index’s biggest gainer was AU Small Finance Bank (up over 2%), subsequently followed by SBI, IndusInd Bank, and Bandhan Bank.
According to market researchers, the banking industry is projected to keep doing better than every other sector in the fiscal years 2023–2024, thus investors should choose reputable companies for long-term investments. The research chair at IDBI Capital Markets & Securities, AK Prabhakar, expressed optimism over a few specific bank equities. There are certain names with incredibly alluring valuations.
He gave the example of HDFC Bank. He noted that lenders in the private sector have increased their aggressiveness. HDFC Bank stated in its announcement that it intends to open 1,500 branches every year for the following two years. The market analyst also stated that he had high hopes for IndusInd Bank. According to him, it has an immense value. He additionally shared about having a lot of optimism for Federal Bank.
The founder and managing director of Equinomics Research, G Chokkalingam, concurred. The expert claimed that he has long held an optimistic outlook for the banking industry. He noted that this sector has beaten all others for at least the previous two quarters, and he anticipates that trend to continue in the following one to two quarters. The analyst provided three justifications for this confidence, including:
- Record credit growth- Growth at 15%, close to a 10-year high. Higher working capital needs, NBFCs, and personal loans have remained to be the growth’s main catalysts.
- Asset quality improves- Significant reduction in banks’ bad loans. For the majority of banks, net non-performing assets (NPAs) have significantly decreased during the past two to three quarters. The analyst observes that the assets’ quality is at a 10-year high.
- End of the rate-hike cycle- Chokkalingam said India was nearing the end of its interest rate rise. He claimed that the interest rate cycle is about to turn, which would be very beneficial for the banking industry since it will increase investment revenue. On the bonds and their holding, a write-back of depreciating consideration would be made. As a result, the investments are going to produce a great deal of substantial revenue.
Published By Naveenika Chauhan