Morgan Stanely said the IndusInd bank has a well-diversified lending portfolio but that it still has a small loan share across segments. It believes a further widening of the portfolio, focus on cross-sell and strong trailing network expansion should help accelerate loan growth.
It said since CEO Ramesh Sobti and team's joining in 2007-08 has gone from being largely a vehicle financier to having a comprehensive product portfolio across retail and corporate segments, similar to other large private banks.
The brokerage expects low-cost deposits to increase going ahead as the bank benefits from increasing dominance with home markets and higher cross sell with vehicle finance/rural customers.
IndusInd stock was 1.56% up on Friday, at Rs 1,340.35.
There have been talks of a merger of IndusInd Bank with Bharat Financial Inclusion while the management of Bharat has said that it is looking to grow business relationship with the private lender.
Morgan Stanley in a report on Friday called IndusInd Bank a 'Mega-cap' in the making as it expects the stock to double in three years time and become a mega-cap by financial year 2020.
The brokerage is overweight on the stock with a target price of Rs 1,600. It expects earnings growth to accelerate and premium valuations to sustain.
http://economictimes.indiatimes.com/mar ... 200863.cms
IndusInd Bank a 'mega-cap' in the making: Morgan Stanley
IndusInd Bank a 'mega-cap' in the making: Morgan Stanley
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