Management acknowledged that IL&FS was a one-off mistake, but exposure to any specific industry is capped at 5 percent, the brokerage said.
IndusInd Bank shares gained nearly a percent in morning on Monday after global research house Deutsche Bank maintained buy call on the stock with a price target at Rs 1,950 apiece, implying 29 percent potential upside.
Management acknowledged that IL&FS was a one-off mistake, but exposure to any specific industry is capped at 5 percent, the brokerage said.
After a big spike in FY19 estimates, FY20 estimates should see normalised credit costs, it added.
Bharat Financial merger should be concluded in mid-March, it feels.
Except for IL&FS exposure linked provision that is likely to continue for at least one more quarter, the bank's December quarter results were in line.
The private sector lender has reported a marginal 5 percent on year growth in the third quarter net profit at Rs 985 crore, dented by higher provisions mostly due to IL&FS exposure.
Net interest income increased sharply by 21 percent year-on-year to Rs 2,288.1 crore in the quarter ended December 2018 with credit growth of 35 percent YoY.
Net interest margin during the quarter contracted to 3.83 percent against 3.99 percent in the same period last year and 3.84 percent in the previous quarter.
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