The share price of IndusInd Bank rose at the open on Friday after the Reserve Bank of India authorised LIC’s expansion of its shareholding in the bank.

In the early session, the stock was trading at Rs 957.50, up Rs 11.20, or 1.18 percent. It hit an intraday high of Rs 966.60 and a low of Rs 956.30.

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Private sector lender IndusInd Bank on Friday announced that the RBI had allowed Life Insurance Corporation of India (LIC) to increase its stake in the bank to 9.99%. The state-run insurer currently owns 4.95% of IndusInd Bank.

“The bank has received an intimation from the RBI on December 9 that it has granted its approval to LIC, which holds 4.95 percent of the total issued and paid-up capital of the bank, to acquire up to 9.99 percent,” IndusInd Bank said.

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Brokerage firm Sharekhan has maintained a ‘buy’ on the stock with a target of Rs 1,340 per share, an upside of 40 percent from the current market price. “The bank continued its Digital 2.0 strategy and the Q2 witnessed the launch of new initiatives. The management is confident of clocking 16-18 percent loan growth as the COVID-19 scenario normalises,” it said.

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“The stock trades at 1.4x/1.3x/1.1x its FY2022E/FY2023E/FY2024 book value, which is reasonable. We maintain a ‘buy’ on the stock with an unchanged price target of Rs 1,340 per share,” it said.

For the quarter ended 30-09-2021, the company reported a consolidated total income of Rs 9,488.06 crore, up 1.34 percent from the last quarter’s total income of Rs 9,362.76 crore and up 8.66 percent from the same quarter last year when it was Rs 8,731.52 crore. The bank reported a net profit after tax of Rs 1,146.73 crore in the latest quarter. 

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Promoters held a 16.54 percent stake in the company as of September 30, while FIIs owned 51.44 percent and DIIs 18.96 percent.