is IndusInd bank going to be next multibagger like HDFC bank? | IndusInd bank

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INTRODUCTION

In the year 1994, IndusInd Bank Ltd was incorporated which is a Banking company (having a market cap of Rs 80624.51 Crore).

The Bank has reported Total Non-Performing Assets / Gross NPAs of Rs 6245.04 Crore and Net Non-Performing Assets / Net NPA of Rs 1771.35 Crore.

For the quarter ended 30-09-2021, the Bank has reported Consolidated Interest Income of Rs 9488.06 Crore, up 1.34 % from quarter ended on 30-06-2021 Interest Income of Rs 9362.76 Crore and up 8.66 % from last years quarter 30-09-2021 of Rs 8731.52 from crore The Bank has a Reported Net Profit After Tax of Rs 1146.73 Crore in the latest quarter.

is IndusInd bank going to be next multibagger like HDFC bank?

GOVERNANCE WITH RESERVE BANK OF INDIA

On Tuesday,  Private sector IndusInd Bank said the Reserve Bank of India (RBI) Made it in the list of an ‘agency bank’ to facilitate transactions which are related to government businesses. IndusInd Bank said that this will strengthen its presence in the public sector.

The announcement was made by RBI among which its  guideline under which scheduled private sector banks has been made an authorisation as agency banks to conduct business relate to government.

With this, IndusInd Bank has join its hand together with few private banks in the country to facilities general banking business on behalf of the government (i.e. state and central), the bank said in a statement.

IndusInd Bank working as agency bank can now be given an authority to handle transactions relating to revenue receipts under CBDT, CCBIC and GST on behalf of the both Government (i.e state and Central).

 Private sector IndusInd Bank on Saturday (October 14) said it will acquire Bharat Financial Inclusion Limited (BFIL), the country’s second largest micro-lender. The deal is expected to be completed in the next 10 months. This will be the first case of merger of a micro-lending company with a bank in the country and will also serve as an example for such deals in future. BFIL was earlier known as SKS Microfinance. This will be the biggest ever acquisition and merger of the micro credit sector.

KOTAK MAHINDRA BANK AQUISTION NEWS

Kotak Mahindra Bank may soon acquire Indusind Bank. With this merger, Kotak Mahindra will become the eighth largest bank in the country. This is crucial  time for banks to go through. Most of the big banks are facing the problem of bad loans (NPA). According to sources, if Kotak Mahindra Bank acquires IndusInd Bank, then it can be a big banking deal in the country. Kotak Mahindra Bank is headed by Uday Kotak, the richest banker in Asia. To increase the size of Kotak Mahindra, Uday Kotak is thinking of merging a smaller bank.

After this merger, the assets of Kotak Bank will reach Rs 7 lakh crore. The difference between it and Axis Bank will reduce. Suresh Ganapathy of Macquarie Capital Securities said, “It has always been a big challenge for Kotak to grow the business in the organic form.” “After the acquisition of IndusInd Bank, Kotak’s asset book, loan book and branch network may grow by 85 per cent, 94 per cent and 100 per cent respectively. This will make its size huge,” he said. Kotak Mahindra Bank is currently the fourth largest private bank in the country.

Kotak Mahindra Bank has overtaken ICICI Bank to become the second largest private bank in the country in terms of value after the merger news and Kotak’s unexpected profit in the second quarter. The shares of this bank have climbed up to 15 percent this week. Due to this its market cap has crossed Rs 3.1 lakh crore.

If this deal goes through and for this the shares of IndusInd Bank are kept at the current price, then the total market value of Kotak Mahindra Bank will reach Rs 4.65 lakh crore, which is much higher than ICICI Bank. Kotak Mahindra Bank declined to comment on the subject. India’s financial sector is worth $2 lakh crore, in which there are 20 private banks and 10 government banks. This sector is facing a very deep crisis due to Corona.

is IndusInd bank going to be next multibagger like HDFC bank?

For the first time in four decades, the Indian economy is shrinking. This has increased the pressure. Banks are just recovering from the NBFC crisis that came two years ago.

The level of bad debt in India is the highest among other large countries of the world, which may fall further to 12.5 percent by March. With both Kotak and IndusInd Bank likely to face increased pressure on their books, the deal is unlikely to have a negative impact on the loan position.

Diksha Gera, Banking Analyst, Bloomberg Intelligence, said, “The acquisition of IndusInd Bank could benefit from Kotak’s additional capital, strong balance sheet and credible management. The bank has diversified loan book and valuation at 1.1x book value. is available.”

There is a tough competition regarding the deposits of customers on the banks. Currently, 57.4 crore customers have taken the facility of savings accounts in 30 banks of India. After this deal, the money deposited in Kotak Mahindra Bank will reach Rs 4.7 lakh crore. This will be much compared to HDFC Bank.

OPINION

Indusind bank aquistion is not that easy has it has now expanded in its own format of the banking sectors where it is growing with the help of other banking regulatories body

Currently, its subsidiary companies are facing a kind of problem in that phases it is very important for us to know the current status how company is going to deal with the problems and situational base thing that might hamper its growth in very long run, however we might see a huge change

In the operational base type of economics of the company however,

If you are interested in buying shares of the indusind bank , we should wait and watch for the situational base thing that might happen in the long term,

How are results going to happen in the next coming quarter, how is the company strategies for growth channel patterns and how they are going to perform for the same, The ratio are favourable for the bank and any thing in the industries.

You can also read this article: Government Jobs 2021 | How to apply government jobs in India for 2021

Q. Is it good time to buy IndusInd Bank stock with 2 year horizon?

A. Over the period of time we should watch the strategy related to future growth and expansion, Before making any kind of investment.

Q. I need to withdraw my IndusInd Bank shares Can anyone guide me Please?

A. kindly put sell request to you broker and it will sell your share on behalf of you.

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