IndusInd Bank stock hits 52-week high, yet valuations inexpensive

Business outlook healthy; majority of analysts positive on the stock

Banks enjoyed an expansion in Net Interest Margins (or NIMs) as well as in credit demand through the 2022-23 financial year (FY23). The credit expansion was because economic growth continued to recover from the Covid-19 years, and indeed, second half GDP growth surprised on the upside. The NIM expansion was because banks raised lending rates immediately (in many cases automatically due to floaters) as the Reserve Bank of India (RBI) hiked policy rates, and only started raising deposit rates late into the fiscal. 

However, although the RBI has hit pause on the rate hikes, the chances are there will be