IndusInd Bank stock climbs 5% on strong loan, deposit growth in Q2

Stocks

Deposits with the bank rose 15 percent YoY from Rs 2,75,473 crore to Rs 3,15,824 crore as of September 2022. The same rose 4 percent QoQ, the company said.

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Shares of IndusInd Bank advanced nearly 5 percent after the lender reported strong loan and deposit growth for the September quarter, lifting the investor sentiment.

The lender said its advances grew 18 percent year-on-year (YoY) and 5 percent quarter-on-quarter (QoQ), beating most peers. Advances stood at Rs 2,59,647 crore as of September as against Rs 2,20,808 crore a year back.

Deposits with the bank rose 15 percent YoY from Rs 2,75,473 crore to Rs 3,15,824 crore as of September 2022. It was a 4 percent on-quarter rise, the bank said.

“Retail deposits and deposits from small business customers amounted to Rs 1,29,895 crore as of September 30 as against Rs 1,24,102 crore as of June 30,” the company said in a regulatory filing.

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CASA Ratio, which is the ratio of deposits in current account and savings account to the total deposits of the bank, also improved to 42.4 percent from 42.1 percent a year ago.

The stock traded up 5 percent to Rs 1,210 on the BSE.

“IndusInd Bank continued to report a strong pick-up in loan growth and we expect these trends to remain healthy which is likely to support margins,” Motilal Oswal said. “Deposit franchise too is growing strongly, with sustained focus in ramping up retail deposits.”

The broker added that improvements in asset quality, particularly in the MFI/Restructuring book, and commercial vehicle demand outlook will be key monitorables.

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