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CLSA maintains buy on IndusInd Bank, target price Rs 2,160

Buy IndusInd Bank Ltd. at a price target of Rs 2160.0 .|
Last Updated: Aug 26, 2019, 08.41 AM IST|Original: Aug 26, 2019, 08.22 AM IST
CLSA has maintained buy rating on IndusInd Bank with a long term target price of Rs 2,160. The stock ended down 1.9% at Rs 1,310.35 on Friday.

Company Financials

For the quarter ended 30-06-2019, the bank has reported a Consolidated Interest Income of Rs 5753.84 crore, up 17.55 % from last quarter Interest Income of Rs 4894.74 crore and up 38.76 % from last year same quarter interest income of Rs 4146.62 crore. The bank has reported net profit after tax of Rs 1432.50 crore in latest quarter.

Investment Rationale

IndusInd Bank’s FY19 annual report shows that the deposit franchise needs to be strengthened through lower CASA per branch and its share in funds and higher deposit concentration, said CLSA. Simultaneously, LCR details show that net outflows/deposits are largely in line with the peer-group and a morethan 130 bps fall in CD rates since March 2019 offers scope for refinancing at cheaper rates, it said.

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