Nomura Financial Advisory and Securities's Adarsh Parasrampuria and Amit Nanavati released a note on Indusind Bank with a Buy rating and a Rs 900 price target as against current market price (CMP) of Rs 944 in its report.

Commenting on the investment rationale, Nomura said, ''IIB has said it will buy RBS's diamond, jewellery financing business in India. The loan book is Rs 45 billion (7% of IIB's loans) and despite it being more profitable than IIB's current business, management highlighted that it is an EPS-accretive deal, indicating that the cost of acquisition has been reasonable.

Apart from providing an inorganic B/S opportunity, this acquisition should provide IIB with more trade finance opportunities. Though the size of the acquisition is small, an EPS-accretive deal is positive and this also will accelerate IIB’s capital-raising plans, which would be +15% book accretive. We maintain our Buy rating.''

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