IndusInd Bank Ltd. share price target

The bank said 16% of the book (including MFI) was under moratorium as on June 2020 as compared to low single digits of morat book during March 2020. In addition, the bank said 90% of Moratorium 2.0 is derived from Moratorium 1.0 with 90% of the Morat 2.0 book being secured. In terms of morat breakup, 19% of retail book (~| 22200 crore) and 9% of corporate...

IIB's PAT of Rs4.6bn (PLe: Rs4.8bn) was marginally below estimates on higher than expected provisions mainly towards COVID related and enhancing PCR to 66%. As first time disclosures +50% of loan book was under moratorium 1.0 with retail being high at 75% which has come down to 16% in the extended moratorium upto Jun'20 and 19% in retail, while corporate book was at 9%. Bank has guided from their second stress test it is likely to see additionally 90bps higher than stress test 1.0 and 60bps credit cost incrementally. Overall collection in MFI has reached to 86% and other...

As guided in Q4FY20, IndusInd's deposit growth improved sequentially (up 5% QoQ). We see this will address concerns of the street on liability management of the bank. NII grew by 16% YoY led by improvement in margins; however non-interest income declined by 9% YoY (down 14% QoQ) due to lower retail disbursements. Consolidated PAT decline by 68% YoY due to higher provisions (up 424% YoY) including floating provisions of Rs.9.2bn on Covid-19. GNPA increased slightly to 2.53% vs 2.45% QoQ; however in absolute terms GNPA declined sequentially (down 1% QoQ). Moratorium book declined from 50% (April'20) to 16% as of June'20. We largely maintain our estimates for FY21/22E. We retain our BUY rating with a new TP of Rs.650 (earlier...

28 July 2020 IndusInd Bank (IIB) reported a stable quarter as lower fee income and higher provisions (credit cost of 4.5% annualized) impacted earnings. On the other hand, lower opex and modest improvement in margins were a surprise. PCR improved to 66.6%, while the bank increased the COVID-19 provisioning buffer to INR12b. Loan growth remains under pressure, while deposit growth is showing signs of stabilizing. The moratorium book has also declined to ~16% at Jun20-end from ~50% as of Apr20-end; the bank suggested GNPA / credit cost impact of 92b/65bp due to COVID-19. We largely maintain our estimates as softness in other income is compensated by lower opex and provisions. Maintain IIB reported PAT of INR5.1b (-64% YoY/+62% QoQ), affected by lower fee income and higher provisions of INR22.64b (credit cost stood at 4.5% annualized). The increase in provisions was on account of the bank creating INR9.2b COVID-19 provisions. NII grew 16% YoY to INR33.

IndusInd Bank's (IIB) Q1FY21 PAT of Rs 5.1bn beat our estimate of Rs 3.8bn on better NII growth, stable NIMs and higher treasury gains.

IndusInd Bank has recorded sharp decline in the net profit to Rs 301.84 crore in the quarter ended March 2020 (Q4FY2020) from Rs 1300.20 crore in the previous quarter and Rs 360.10 crore in the corresponding quarter of last year, due to sharp increase in provisions. The fresh slippages of loans remain elevated leading to sharp increase in provisions for bad debt to Rs...

28 April 2020 IIBs results reflect asset quality pressure with elevated slippages at INR20.6b, which resulted in a sharp spike in credit cost to 4.7% annualized (240bp for FY20). PCR, thus, improved sharply (2,030bp) during FY20 to 63.3%. Further, business growth remained sluggish in the corporate/CV portfolio while margins expanded owing to continued improvement in the asset mix. Management has suggested GNPA impact of 80bp due to the COVID-19 pandemic and created floating provisions of INR2.6b during 4QFY20. Due to better-than-expected core operating performance and an improving credit cost outlook, we have revised our PAT estimates by 10%/3% for FY21/FY22E. Maintain 4QFY20 PAT of INR3.1b (12%/76% YoY/QoQ decline) was affected by higher provisions of INR24.4b. Thus, credit cost stood elevated at 4.7% (annualized). NII grew 45% YoY to INR32.

IndusInd's deposit growth declined to 4%YoY in Q4FY20 (23% Q3FY20) due to outflows in government deposits (75%) and corporate deposits (25%) was a worrisome. However, Rs.60bn accretion in first 2 weeks of April and guidance of strong sequential growth of deposits in Q1FY21 could be seen as positive. NII grew by 45% YoY with a 14% YoY growth in its other income. Consolidated PAT decline by 12% YoY due to higher provisions (up 56% YoY) including floating provisions of Rs.2.6bn on Covid-19. GNPA increased to 2.45% vs 2.19%; however NNPA declined to 0.91% vs 1.05% due to accelerated provisioning. Bank's SMA1 & 2 exposure declined to 0.69% vs 1.17% (QoQ) of loan book. We largely maintain our estimates for FY21. We retain...

Weekly Wrap: Fed, ECB meet in focus. IIB: No respite from asset quality challenges

IIB's earnings of Rs3.0bn (PLe: Rs3.3bn) were in-line with expectation as bank made high provisions to improve its PCR to 63% from 53% sequentially, which was lagging behind peers. Slower earnings trajectory was also on back of Rs5.5-6.0bn of higher provisions for potential COVID impact & on stressed telecom sector. Overall PPOP performance was better with strong NII led by expansion in NIMs of 10bps sequentially, contrary to expectations, while opex control also helped. With IIB's diversified book it is vulnerable to weak macroeconomics and could see higher prolonged stress. In view with this,...