IndusInd Bank stock rose to Rs 1317, a 3.32 per cent increase from the previous day’s closing price after reports claimed that promoters The Hinduja Group may get final approval from the Reserve Bank of India (RBI) to raise its stake in IndusInd Bank to 26 per cent from the existing 16.51 per cent by investing an additional Rs 10,000 crore in the bank, a report in ETNow said.
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IndusInd Bank experienced a bullish trend as its price has broken out positively and is currently trading above its third resistance level (R3) at 1316.9333, with the current price at Rs 1317 at 2.10 PM on Friday.
In February 2023, it was reported that the central bank has given its in-principle and conditional consent to IndusInd International Holdings Ltd, a Hinduja Group entity.
The Hinduja Group currently holds a 16.51 per cent stake in the bank, where IndusInd International Holdings had 12.58 per cent and IndusInd Ltd had 3.92 per cent, a December 2022 stock exchange disclosure stated.
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This will be the first stake hike in IndusInd Bank after RBI’s revised guidelines on private bank ownerships which were launched in November 2021.
Global brokerage firm Nomura on Friday said IndusInd Bank is their key alpha idea, as a rare RoA expansion story going into FY24F, that is also well-hedged against possible interest rate cuts.
IndusInd Bank has seen strong share price trends, hitting a 52-week high on June 22. The bank reported stable NIMs, robust loan growth and strong RoA (return on assets) though it saw sequentially higher gross slippage.
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In the January-March quarter (Q4) of FY23, the bank reported profit after tax (PAT) at Rs 2,040 crore, up 50 per cent year-on-year (YoY) (up 4 per cent quarter-on-quarter or QoQ), on the back of 13 per cent YoY growth (2 per cent QoQ) in core operating earnings and moderation in credit costs.
Annualised RoA is strong at 1.9 per cent for Q4FY23 and 1.8 per cent overall for FY23.
