IndusInd Bank shares gain nearly 2% as lender gets RBI nod to launch MF business

IndusInd Bank shares gained as much as 1.78% to ₹1,371.75 apiece in the early trade on Tuesday, August 20, as the private sector lender informed exchanges on Monday that it has received approval from the Reserve Bank of India (RBI) for setting up a wholly-owned subsidiary to undertake asset management business of mutual fund along with infusing equity capital in the said asset management subsidiary.

Shares of the bank on Monday ended 1.30% lower at ₹1,347.70 apiece on the BSE.

IndusInd Bank Q1 FY25 Results

For the quarter under review, its core net interest income rose 11% to ₹5,408 crore on the back of a 15% growth in advances and the net interest margin remaining flat at 4.25%. The other income rose 10% to ₹2,441 crore.

It managed a deposit growth of 15%, and Kathpalia made it clear that asset growth will be in line with liability growth. The bank continues to aspire for 18–23% growth in assets as listed in a medium-term plan, the MD said.

On the asset quality front, a bulk of ₹1,488 crore of the overall ₹1,536 crore of fresh slippages came from the retail side, which were spread across lending lines, including microloans and vehicles.

The gross non-performing assets ratio increased to 2.02% from 1.92% at the end of March.

The bank has been cautious on certain segments, including personal loans and also micro loans, Kathpalia said, specifying that it reduced its portfolio by Rs 2,000 crore in the latter.

Its overall capital adequacy stood at 17.55% as of June-end, with the core buffer at 16.15%.

IndusInd Bank stock performance

IndusInd Bank shares have remained muted at the bourses over the past five years. Data show the stock has gained just 3% during the period as compared to a 127% jump in the NIFTY50 index.