IndusInd Bank share price rose as much as 2 percent on Wednesday as the foreign brokerage firm Jefferies sees about a 23 percent upside in the stock from the current market price. Jefferies has set its target price on the stock at Rs 1,330. At 9:34 am, shares of the lender were trading 1.3 percent higher at Rs 1,085.2 on the BSE.
The foreign brokerage firm has a ‘buy’ rating on the stock. It believes that new initiatives on liabilities, corporate and rural banking can turnaround return on asset.
Jefferies also sees further improvement in retail deposit franchise for the lender.
Net interest margin—the difference between the interest income earned and the interest paid by a bank or financial institution—was at an 8-year high while return ratios were best in 10 quarters during the June quarter.
Additionally, loan growth was also the best in 10 quarters on a year-on-year basis.
The lender has recently launched two digital banking units, one each in Punjab and Tamil Nadu.
“This announcement is in line with the recent Digital Banking Unit advisory, to accelerate and widen the reach of digital banking services in the country,” the bank had said in an exchange filing.
