Buy IndusInd Bank with a target of Rs 1415: Bank of America Merrill Lynch

Bank of America Merrill Lynch has a buy call on IndusInd Bank Ltd. with a target price of Rs 1415 . The current market price of IndusInd Bank Ltd. is Rs 1220.25 . Time period given by the brokerage is a year when IndusInd Bank Ltd. price can reach the defined target. The margin uptick was led by rising Casa and the asset quality also remains manageable, said the BofA-Ml note. The fee growth was a tad weak in 2Q at 23 per cent YoY as forex income remain muted due to the stable rupee. The earnings per share (EPS) growth is estimated at 24/27% for FY17/18. BofA-ML believes that IndusInd Bank has scope for higher EPS in a falling rate environment due to a higher share of the fixed rate loan book.