IndusInd Bank Ltd. share price target

Indusind Bank has reported better than expected numbers in 4QFY21, as its GNPA/NNPA ratio declined to 2.67%/0.69% from pro-forma NPA ratio of 2.93%/0.7% in the previous quarter. As a result of resumption in asset classification, the gross slippages inched up to 63.3bn v/s...

Stress created due to the Coronavirus pandemic seems to have eased for the banking sector.

IIB's promoter has taken a leap ahead to convert its due warrants of Rs20.2bn at premium of 62% from CMP, although warrants issued in Q1FY20 were also at 18% premium. Infusion of money will increase promoter stake to 15%, add 3% to BV, improve capital by 4-5% with CET-I moving to ~16% from 14.3% in Q3FY21. Promoter has pledged its holding in IIB of 5.64% (Rs40bn on Mcap) looking for acquisition/strategic investment to convert promoter holding entity (IIHL) into listed operating entity outside India by Sep'21 and provide exit to its shareholders. Promoters also intends to increase its stake to 26%...

Gross NPA ratio in the corporate book was flat at 2.52%, while in the retail loan book GNPA eased to 1.20% at end December 2020 from 3.43% and 1.38% a quarter ago. Restructured advances book of the bank increased on sequential basis at 0.60% of the advances during the quarter under review from 0.05% a quarter ago....

Loan book remained flat at Rs. 207,128cr, driven by mixed performance of Consumer finance (+5.8% YoY) and Corporate banking (-7.1% YoY). Whereas, Deposits rose 10.3% YoY. Net interest margin (NIM) declined marginally vs. previous year, to 4.12%, even as cost of deposits reduced 115bps YoY to 5.34%. GNPA/NNPA improved to 1.74%/0.22% (vs. 2.21%/0.52% in Q2FY21). Improvement in collection efficiency and capital adequacy ratios give a positive outlook. However, loan book growth remained muted despite...

Getting Back to Normalcy: Indusind Bank (IIB) reported stable set of numbers. NII growth at 11 percent was below normal run rate due to lower advances growth despite stable NIM. NIM at 4.12 was maintained despite interest reversals of Rs. 1.89 Bn due to funding cost benefits.

In Q3FY21, NII increased 10.8% YoY, 3.9% QoQ to | 3406 crore. Margins for the quarter declined a tad by 4 bps QoQ. Other income increased QoQ by 9.8% to | 1705 crore. This was mainly on account of 31% QoQ rise in core fee income. Operating expenses were under control. As a result, the costto-income ratio was down ~171 bps YoY to 41.8% but was up sequentially by ~41 bps, attributable to a rise in business activity. Provisions remained elevated at | 1854 crore but was down 5.6% QoQ. During the quarter, the bank made provisions worth | 1106 crore for Covid related stress. Overall, led by a sequential decline in provisions and pick-up in topline, the bank...

In Q3FY21, NII increased 10.8% YoY, 3.9% QoQ to | 3406 crore. Margins for the quarter declined a tad by 4 bps QoQ. Other income increased QoQ by 9.8% to | 1705 crore. This was mainly on account of 31% QoQ rise in core fee income. Operating expenses were under control. As a result, the costto-income ratio was down ~171 bps YoY to 41.8% but was up sequentially by ~41 bps, attributable to a rise in business activity. Provisions remained elevated at | 1854 crore but was down 5.6% QoQ. During the quarter, the bank made provisions worth | 1106 crore for Covid related stress. Overall, led by a sequential decline in provisions and pick-up in topline, the bank...

Indusind Bank has reported better than expected numbers in 3QFY21, as its gross slippages declined at 0.6bn v/s 3.99bn in 2QFY21. The bank has reported provision expenses 18.5bn v/s 19.6bn in the previous quarter. The total Covid provisioning stood at 32.6bn. The total contingent provision (excluding PCR) stood at 2.2% of loan book. Total loan loss provisions (cumulative, Covid and contingent) stood 210% of GNPLs and 3.1% of book. The bank's collection efficiencies have improved significantly (~98% as on Dec-20) and one of the best among large private banks. The capital infusion (post money CET 1: 14.5%) would provide further cushion. Furthermore the liquidity surplus of 400bn is likely to safeguard the balance sheet. We expect the credit cost to...

IndusInd's Proforma GNPA stood at 2.93% and NNPA at 0.70% However; reported GNPA and NNPA were lower at 1.74% and 0.22% respectively. Bank Proforma slippages remain at Rs25.08bn (1.2% of loan book) and comprises 20% from Vehicle and MFI each, Corporate and retail (secured & unsecured) constitutes 15% and 45% respectively. Restructuring book would be 1.8% of book and within that vehicle involves 30% and corporate banking is 57%. Bank reported Collection efficiency at 97.1% vs 94.7% for September month. Deposit saw stable growth of 10% YoY while advances remain flat YoY. NII grew by 11% YoY slightly decline YoY compared to Q2FY21 led by decline in margins; however non-interest income declined by 5% YoY (up 10% QoQ). PAT decline by...