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Morgan Stanley has an 'overweight' call on the stock with a target price of Rs 1,475. The brokerage says that company's retail deposit growth accelerated to 21 percent year-on-year (YoY) against 16 percent YoY last quarter.

IndusInd Bank has released its third quarter business updates. On a year-on-year (YoY) basis, it is at 12-quarter high, the deposit growth is at 14.3 percent YoY and around 3.1 percent on a quarter-on-quarter (QoQ) basis.

The loan growth is at 18.98 percent YoY, the best growth seen in last 12 quarters and up about 4.5 percent sequentially.

The current account/saving account (CASA) ratio has declined to seven-quarter low of 42 percent. Calculation shows that CASA has increased by more than two percent. However, the strong deposit growth in the other than CASA franchise does mean that the CASA ratio has slipped down.

Retail deposit momentum was strong, up about 6.14 percent sequentially.

The credit-deposit ratio has improved 83.6 percent when compared to 80.3 percent on a year-on-year basis and about 82.4 percent on a quarter-on-quarter basis.

The IndusInd Bank largely focuses on retail portfolio like CV etc which are high-yielding products. Hence, one can expect net interest margins (NIMs) to improve for the bank on a sequential basis.

The brokerages are upbeat on the stock.

CLSA has upgraded the stock to ‘buy’ from ‘outperform’ rating raising the target price to Rs 1,500.

Macquarie and Jefferies has a 'buy' call on the shares of IndusInd Bank with a target price of Rs 1,400 and Rs 1,600 respectively.

Macquarie believes that falling credit costs could drive RoA to 1.8 percent.

Morgan Stanley has an 'overweight' call on the stock with a target price of Rs 1,475. The brokerage says that company's retail deposit growth accelerated to 21 percent year-on-year (YoY) against 16 percent YoY last quarter.

Deven Choksey, KRChoksey believes that the higher amount of economic activity is happening, particularly due to the infrastructure led spending, which the government is doing is resulting into higher amount of industrial product consumptions. Because of which the participation of large to mid and small sized enterprises into this activity has been witnessed, which is basically resulting into higher amount of credit offtake. On the other side, retail credit offtake is also continuing to do well with the consumption and so is the situation with housing finance.

“So overall it appears to be a sustained activity continuing as far as the growth in lending book is concerned, which would continue for a longer period,” he said.

The stock was up 0.64 percent in the last one week and 1.83 percent in the past month.

Courtesy: CNBC TV18