FINANCE & STOCK ADVICE: My View On Indusind Bank

About The Company

Hinduja owned IndusInd Bank is in que to establish the brand in the Indian Market. The bank has been trying to have a significant market share , which the upcoming times would say.

About The Results

The Bank has posted a good performance for the third quarter ended 31^st Dec 2008. And to a large extent, the spurt in the performance has been on account of the rise in other income, which was at Rs.133 crore as against Rs.74.30 crore in Q3FY08. And this was mainly on account of an increase in operational fee income, sale of third party products such as insurance, trade finance, treasury gains and foreign exchange transactions.

QoQ, Net Interest Income was up 11% at Rs 116.58 crore and 17.10% on a YoY. Advances grew by 12% while the management has give a guidance of a rise of 25% for FY09. The main focus of the bank has now shifted from vehicle financing, which as such was risky business with higher bad debts, to corporate financing. 50% of its bad loans are from the retail segment ad the rest from the wholesale portfolio.

The biggest positive for the Bank is the recovery it has made from Essar Oil. It has got back Rs 115 crore, lent to Essar in the 90’s and this has got down its NPA drastically in the third quarter. In Q3FY09 net NPA was at 1.3% which in Q2FY09 was at 2.21% and in

Q3FY08 at 2.42%. The loan recovery is expected to improve the asset quality of the bank substantially. CAR for the quarter was at 12.40% as against 12.45% in Q2FY09 and 12.04% in Q3FY08.

Net interest margin has improved from 1.7% in Q3FY09 to 1.95% and from 1.84% on QoQ. This was mainly due to increase in yields which rose from about 12.6% to well above 14%.

About The Stock

The stock has never been in limelight and the investor do not react to the stock much.There are better choices available in this sector for investment and trading , so this stock could be avoided.

Disclaimer : I do not have any personal holding in this stock.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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My View On Indusind Bank