IndusInd Bank Limited is a Mumbai based Indian new generation bank, established in 1994. The bank offers commercial, transactional and electronic banking products and services.

During FY19, bank provided for almost entire IL&FS exposure in 1-year which led to increase in credit cost to 1.2% from 0.6% in FY18. Bank’s funded and nonfunded exposure to the potentially stressed groups is only 1.9% of the loan book. Hence, there could be normalization of credit costs to 0.9% by FY21 from 1.2% in FY19

Over the years, this bank has been a good compounder of earnings. It now trades at the lower end, of its recent past, valuation zone. Even on Market Cap/Core preprovisioning profit the bank is one of the cheaper private sector banks and offers a good value proposition

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

Found this insight useful?

For more such insights, delivered daily in real-time for free, download the inChat app from the Play Store. Download Now!

Please share with your friends and family as well. You can also subscribe to one of our channels listed at the bottom of this page.