By Malvika Gurung
Investing.com — Shares of the private sector lender IndusInd Bank (NS:) surged 3.18% to Rs 1,143.5 apiece at 11:58 am on Friday and were trading as the top gainer stock on the headline index .
IndusInd Bank was also the best performing stock on the 12-scrip sectoral index , up 0.78% at the time of writing. The index soared to a new high of 40,265.75 in the previous session, posting its highest level in over 10 months.
The banking scrip rose on Friday after global brokerage Credit Suisse (SIX:) held its outperform rating on the stock and revised its target price to Rs 1,280/share, an upside of 12.3% compared to the current price.
The global investment bank believes the Indian lender is well capitalised and expects it to achieve a loan growth of over 20% in FY23. The bank appears to be on course to achieve a return on equity of around 15% in the fiscal year as credit costs moderate.
Compared to the existing share to retail of 54%, the management aims to increase it to 60% and the bank is well capitalized with the Common Equity Tier-1 (CET-1) at over 16%, stated the brokerage.
Further, the domestic brokerage Anand Rathi (NS:) is also bullish on the banking stock, expecting overall credit growth to continue strong in the medium term. It has a Buy rating on the stock with a target price of Rs 1,300/share, an upside of 14%.