INDUSIND BANK Good Banking Stock To Move On

IndusInd Bank has posted a good performance for the third quarter ended 31st Dec 2008. Rs.133 crore as against Rs.74.30 crore in Q3FY08. was mainly on account of an increase in operational fee income, sale of third party products such as insurance, trade finance, treasury gains and foreign exchange transactions.
QoQ, Net Interest Income was up 11% at Rs 116.58 crore and 17.10% on a YoY. Advances grew by 12% while the management has give a guidance of a rise of 25% for FY09. The main focus of the bank has now shifted from vehicle financing, which as such was risky business with higher bad debts, to corporate financing.

The biggest positive for the Bank is the recovery it has made from Essar Oil. It has got back Rs 115 crore, lent to Essar in the 90’s and this has got down its NPA drastically in the third quarter.

Net interest margin has improved from 1.7% in Q3FY09 to 1.95% and from 1.84% on QoQ. This was mainly due to increase in yields which rose from about 12.6% to well above 14%.

Net profit for the quarter was 79% at Rs 45.06 crore on YoY basis and that in today’s time is quite a big jump.
The markets did not exactly jump up to buy this stock in a hurry. It fell 2% on the day the results were announced but has since then, been in the positive. thanks