IndusInd Bank share price hits new 52-week high as net advances jump 20% YoY in Q3
₹1,650.7 apiece in today's trade, breaking its previous one-year peak of ₹1,618. This uptick in shares came after the bank released its quarterly update for 3QFY24 on Wednesday. For the December quarter, the bank's net advances grew by 20% to ₹3,26,741 crore as compared to net advances of ₹2,72,754 crore in Q3FY23.
In the preceding quarter (Q2FY24), the net advances stood at ₹3,15,454 crore. Also Read: Mint Explainer: Why RBI has proposed new rules on dividend payouts by banks The bank’s CD ratio increased to 88.6%, up 82 basis points QoQ in 3QFY24. Deposit growth came in healthy at 2.6% QoQ and 13.4% YoY to ₹3,68,955 crore.
However, the CASA mix in deposits saw a decline of 90 basis points QoQ and 350 basis points YoY to 38.5% in Q3FY24, according to the bank's exchange filing. "IIB continues to report a strong trend in loan growth, and we expect this trend to remain healthy, which is likely to support margins going forward. Deposit franchise is also growing at a steady pace, with the focus remaining on augmenting retail deposits," said domestic brokerage firm Motilal Oswal.
The bank has strong moats in vehicle finance (VF) and microfinance (MF), and it has added several granular levers for growth, including affordable housing, Bharat Super Shop, and used vehicles. Also Read: Could power stocks witness a rally like defence stocks in 2024? Earlier in December, ICICI Direct Research initiated coverage on the stock with a 'buy' rating and set a target price of ₹1,800 apiece, citing the bank's focus on key parameters and its targeted lending approach, specifically focusing on mid- and small corporates in the wholesale segment and the auto segment in the consumer segment. "IndusInd Bank has targeted improvement across
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