IndusInd Bank shares slip post-Q4 result, dividend announcement; what should investors do?

IndusInd Bank share price target, IndusInd Bank share price today, IndusInd Bank Q4 results: IndusInd Bank shares on Friday, April 26 closed 3.08 per cent lower at Rs 1,450 on NSE, a day after the private sector lender reported decent Q4 numbers. 

IndusInd Bank Q4 results

On Thursday, post market hours, IndusInd Bank posted a 15 per cent rise in consolidated net profit at Rs 2,349 crore for the fourth quarter ended March 2024, helped by increase in interest income. The lender had logged a profit of Rs 2,043 crore in the year-ago period.

Total income increased to Rs 14,707 crore during the quarter under review, as against Rs 12,174 crore in the same period last year, the firm said in a regulatory filing. The bank earned an interest income of Rs 12,199 crore during the quarter, as compared to Rs 10,020 crore in the same period a year ago.

On the asset quality front, the lender reported an improvement as gross non-performing assets (NPAs or bad loans) fell to 1.92 per cent of gross advances as of March 2024, from 1.98 per cent by the year-ago period. Read more on IndusInd Bank Q4 results

IndusInd Bank share price target: Should you buy sell or hold?

Five brokerages, CLSA, Goldman Sachs, Jefferies, Citi and HSBC have maintained a 'buy' call on the IndusInd Bank stock.

CLSA has trimmed the target by Rs 100 per share to Rs 1,900 per share. Jefferies and HSBC each has reduced the targets to Rs 1,940 from 2,070 and Rs 2,020 from 2,030 while Citi has placed the targets to Rs 2,010.

Goldman Sachs has raised the target to Rs 1,748 from Rs 1,747.

Morgan Stanley has maintained an 'overweight' rating on IndusInd Bank shares with a target of Rs 1,925. According to the brokerage, Asset quality improved, strong retail deposit growth were among the positives in the Q4 results while miss on NII and fees were the negatives. 

The balance sheet is strong with CET-1 ratio at 15.8 per cent and LCR at 118 per cent, according to the brokerage. The brokerage has trimmed its EPS by 2 per cent for F25/F26.

Macquarie has maintained an 'outperform' rating on the stock with a target of Rs 1,900. JPMorgan has maintained a 'neutral' rating on IndusInd Bank with a target of Rs 1,450.

IndusInd Bank dividend 2024 

The bank's board has recommended a dividend of Rs 16.5 per equity share of Rs 10 each fully paid up out of the net profits for the year ended March 31, 2024, subject to the approval of shareholders at the ensuing Annual General Meeting (AGM).

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