Shares of IndusInd Bank hit a more than three-year high of Rs 1,294.65 in intraday trade on Monday, up 2% on the BSE, on expectations of a healthy future. Shares of private sector banks are at their highest level since February 2020. IndusInd Bank has outperformed the market by 12% over the past month, while the S&P BSE Sensex gained 2.7%.

The market price of IndusInd Bank has risen sharply, helping the bank to regain Rs 1 trillion in market capitalisation today. BSE data showed that the stock was up 1.8% at Rs 1,291.50 by 11:23 am, with a market capitalisation of Rs 1.002 trillion.

IndusInd Bank is a new-age private bank advocated by the Hinduja Group and is India’s fifth-largest private bank. Vehicle financing accounts for approximately 26% of total loans.

IndusInd Bank reported a healthy set of figures for the January-March quarter (Q4FY23), with strong loan book growth, stable net interest margin (NIM) and low provisions. The bank reported a 21.3% year-over-year increase in advances, driven by higher spending and strong growth in both the consumer and corporate sectors.

Meanwhile, when the results were announced on April 24th, management introduced a 6th planning cycle (FY23-26), in which they guided for a credit growth of 18-23% YoY, mainly driven by retail (55-60% share) and pre-provisioned operating profit (PPOP) margins of 5.25-5.75%.

Prabhudas Lilladher maintained a “buy” call on the stock with a target price of Rs 1,530 per share. ICICI Securities maintained its “buy” call on the stock with a target price of Rs 1,450 per share.