IndusInd Bank Ltd. share price target

IndusInd Bank (IIB) commenced its operations in 1994 and had transformational management change

Our interaction with the management of IndusInd Bank (IIB) suggests that the macro uncertainties / volatility amidst current geopolitical situation and prolonged supply disruption may pose some risk to financing demand in gems/jewellery (Russia accounts for ~30% of global diamond output) and vehicle financing (due to rise in fuel prices).

IndusInd Bank (IIB) is India's fourth largest private bank.

Interest income grew 6.8% YoY to Rs. 7,737cr in Q3FY22, while interest costs rose 2.8% YoY to Rs. 3,944cr, resulting in NII growth of 11.4% YoY. Although total expenses increased 7.3% YoY, this was offset by lower provisions (-10.8%YoY) and higher non-interest income (+10.0% YoY). As the result, PAT surged 36.2% YoY to Rs. 1,161cr. Given the bank's growth potential and strong business infrastructure supported by a strong balance sheet and improved asset quality, we remain positive on the stock and reiterate our BUY rating with a rolled...

Stable quarter; guidance maintained

reduced by 8% sequentially. In retail banking, 2-wheeler segment and CV segment have higher GNPA ratio of 9.3% and 3.6% respectively; However NPA ratio inched down in both segment. BBG/LAP segment has GNPA of 2.9%. Stress in MFI has GNPA ratio of 3.2%. The SMA1/SMA2 stood at 25bps and 59bps respectively. The standard restructured assets went down and stood ~76bn (3.3% of book) v/s 80bn (3.6%). Vehicle finance and MFI contributed around 50% (37bn) and 13% (10bn) of restructured pool. The bank's provision expenses down sequentially to 16.5bn v/s 17bn in the previous quarter. The total provisions (including contingent) stood at...