After four straight sessions of losses, shares of IndusInd Bank climbed 3 percent on BSE in the morning trade on October 4.
The stock rose after the global financial firm Citi maintained a buy recommendation, with a target price of Rs 1,980, saying the asset quality was holding up but NPA coverage was likely to increase.
As per Citi, the private lender was gaining market share from NBFCs and the risk-reward ratio was also better.
The stock touched its 52-week low of Rs 1,220 on October 3 on concerns over exposure to stressed entities.
Citi said the company was confident and had seen some recoveries in the second quarter.
Earlier in an interview to CNBC-TV18, CEO Romesh Sobti said that IndusInd Bank has had significant recoveries in some stressed accounts, while exposures in various sectors remained pretty much constant. Credit cost would be under control in Q2 just like in Q1, he said.
“We have seen significant recoveries in the corporate book. The merger with Bharat Financial Inclusion has proven to be very beneficial. There is sufficient collateral against all the real estate exposures,” he said.
“The bank has been receiving retail deposits worth Rs 5,000-6,000 crore every quarter, with commercial vehicle portfolio continuing to grow at over 20 percent,” he said.
At around 1000 hours, shares of IndusInd Bank were trading 2.20 percent higher at Rs 1,284.20 on BSE. Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.