JMFL
IndusInd Bank (Buy)
CMP: ₹1,437.60
Target: ₹1,572
IndusInd Bank has been one of the most successful turn-around stories among listed Indian companies. Its management team has not only placed the bank in a lead position in the financial services industry, it has also ensured that the bank is evolving and staying ahead of competition in several ways. Every three years, it recalibrates the deliverables for the ensuing Planning Cycle. The bank is now headed into its fourth and has communicated a brief but clear roadmap for PC-4.
In this note we take a relook at the previous PCs, the achievements and how IIB has systematically built upon its franchise. Further, PC4 will ensure sustained market share gains, strong profitability and greater diversification in its balance sheet. IIB has laid great strategic emphasis on digital initiatives as compared to any of the previous PCs, indicating that this will be a key area of competition among banks in the medium-term. We maintain our positive stance on IIB, believing it will continue to gain scale with profitability.