New Research Reports

Strategic pivot towards high yielding assets

IndusInd Bank reported discrepancies in its derivative portfolio pertaining to transactions done over the past 7-8 years. During the internal review of the trade book in derivative portfolio in October 2024, the bank found some discrepancies.

IndusInd Bank (IIB) has communicated a preliminary one-time hit of ~2.35% of net-worth on its derivative portfolio. We peg the pre-tax hit at ~INR 20bn–21bn.

Discrepancy in derivative portfolio account to adversely impact net worth by 2.35%, indicates weak internal controls

In our interaction with the management, it reiterated its disbursement/AUM growth target for FY26E. It expects AUM growth to improve to ~15% for FY2026E (vs sub ~10% for FY25E) despite challenges in its key market Karnataka & Telangana.

driven by uncertainties relating to earnings quality and future leadership. Woes This discrepancy spanned across a 5-7yr period till 31st Mar'24, however, due to an RBI directive, there are no irregularities w.e.f. 1st Apr'24. While an external review is underway to ascertain the exact impact, internal review suggests a...

The RBI has approved the reappointment of Mr. Sumant Kathpalia as MD & CEO of the bank for a one-year term, effective 24th Mar’25, following the conclusion of his current term.

SBI is expected to sustain healthy performance in terms of growth and profitability in the near to medium term. Loan growth guidance is intact at ~14-15% y-o-y and deposit growth at 10% y-o-y.

As opposed to the three-year term requested by IndusInd Bank’s (IIB) board for its incumbent MD & CEO, Mr Sumant Kathpalia, RBI has approved a term renewal for only one year.