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IndusInd Bank hits 5-month high; regains Rs 1 trillion market cap mark

The stock was under pressure after falling 34 per cent between August 3, 2018 and October 31, 2018, on concerns over its exposure to the IL&FS Group

SI Reporter  |  Mumbai 

IndusInd Bank
The bank remains positive on its NPA outlook and said that asset quality would be stable

Shares of are trading higher for the third straight day, hitting five-month high of Rs 1,685, up 3 per cent on the BSE, in intra-day trade on Thursday in an otherwise range-bound market. The stock was trading at its highest level since October 16, 2018.

In the past three trading days, the stock has rallied 11 per cent, as compared to 2 per cent rise in the S&P It recovered 26 per cent from its 52-week low level of Rs 1,334 on October 31, 2018. Boosted by continuous rally in stock, the market valuation of regained the Rs 1 trillion-mark today.

The stock was under pressure after falling 34 per cent between August 3, 2018 and October 31, 2018, on concerns over its exposure to the cash-strapped Infrastructure Leasing & Financial Services (IL&FS) Group.

Analysts at Equirus Securities have ‘overweight’ rating on the stock and believe that can continue to deliver a strong operating performance as there are limited active lenders in corporate banking and competitive intensity eases in the vehicle finance space.

The bank’s exposure to the group is expected to slip into non-performing assets (NPA), leading to a deterioration in its asset quality next quarter. Management expects up to an Rs 1,000 crore hair-cut on the total exposure to However, given the bank’s negligible stressed pipeline on the corporate side (barring IL&FS) and low risk on its vehicle-finance portfolio, we expect its asset quality to improve from Q1FY20, analysts at Anand Rathi Share and Stock Brokers said in Q3FY19 result update.

At 11:10 am, IndusInd Bank was quoting 2.7 per cent higher at Rs 1,680 on the BSE, with Rs 1.01 trillion In comparison, the S&P was up 0.17 per cent at 37,797 points.

First Published: Thu, March 14 2019. 11:15 IST
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