IndusInd Bank Ltd.

NSE: INDUSINDBK | BSE: 532187 | ISIN: INE095A01012 | Industry: Banks
| Risky Value
854.4500 -1.80 (-0.21%)
NSE Jul 07, 2025 15:31 PM
Volume: 3.3M
 

854.45
-0.21%
HDFC Securities
Elevated slippages and consequent provisions at IIB dented IIB's RoAAs over FY19 and will continue to do so over FY20E. However, we see these as transient and expect RoAAs to climb to 1.90/1.97% by FY21/22E (one of the best amongst its peers) even as we build elevated LLPs. Our constructive stance on the stock remains unchanged in spite of the stress that has played out so far, and draws on IIB's inherent strengths and asset quality improvement beyond FY20E. A smooth leadership transition will help with current asset quality issues. IIBs 3QFY20 net earnings were below estimates due to higher provisions while the banks operating performance was slightly ahead of estimates (led by higher NIMs and controlled opex). Loan growth (YoY) remained slow, and even as GNPAs inched up, PCR increased. Maintain BUY with a TP of Rs 1,990 (3.0x Dec-21E ABV of Rs 663).
Number of FII/FPI investors decreased from 772 to 751 in Mar 2025 qtr
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