Shares of IndusInd Bank gained 1.7 percent intraday Thursday as foreign brokerage Deutsche Bank has maintained buy rating on IndusInd Bank and raised target price to Rs 2,050 from Rs 1,950 per share.
According to Deutsche Bank the base business of the bank is doing well and Bharat Financial to enhance its growth/profitability.
The company's business to be more diversified and profitable now and expect return ratios to improve post-merger; RoAs at 2.2 percent and RoE at 20 percent.
The broking house expecting steady net interest margins on current business, while benefits on fee income front to aid the profitability.
The MFI acquisition to enhance net interest margins (NIM) by 50 bps and there is no current concerns about asset quality, it added.
At 14:40 hrs IndusInd Bank was quoting at Rs 1,755.05, up Rs 23.55, or 1.36 percent.
The share touched its 52-week high Rs 1,818 and 52-week low Rs 1,369.20 on 12 September, 2017 and 22 March, 2017, respectively.
Currently, it is trading 3.47 percent below its 52-week high and 28.18 percent above its 52-week low.
Posted by Rakesh Patil
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