Sell IndusInd Bank: Recommends Citigroup

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Citigroup has recommended a "sell" rating on IndusInd Bank with a target price of 455 rupees, citing stretched valuations.
The investment bank says IndusInd has transformed itself into a "unique" bank that is also a non-banking financial company (NBFC).
However, Citi adds that "future growth will likely be less dynamic, amid a tougher macro, and less unique" as other NBFCs are applying for banking licenses.
The stock has been a huge out-performer in the last 2 years and has more than doubled from 250 odd levels in June 2011 to 500 in May 2013. Going forward the credit growth is expected to slowdown due to slowdown in India GDP and capital expenditures which is expected to put pressure on Banks and financial institutions in general.

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