IndusInd Bank Ltd. share price target

IndusInd Bank saw strong operational performance for the March quarter with revenue growing 32% driven by NII growth of 45% and fee income growth of 14%. It saw NIM improvement of 10 bps QoQ driven by fall in cost of deposit. It saw improvement in its cost to income ratio which resulted in strong operating growth of 38%. Loan book grew by 11%...

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

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...

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.

The management had recognised exposure of | 961 crore as fraud in Q3FY20, to be provided through P&L; account in four quarters. Consequently, the bank has recognised | 240 crore in Q3FY20, | 240 crore in Q4FY20. Remaining, | 480 crore is to be provided in next two quarters. The bank has provisioned | 75 crore for a stressed telecom exposure. To shore up provision coverage amid Covid-19 uncertainty, floating provision of | 260 crore was been created. The bank said advances in low single digit opted for moratorium. Such exposure was at ~| 460 crore while 5% has...

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,...

IndusInd Bank's (IIB) Q4FY20 PAT at Rs 3bn (16% YoY) was ahead of estimates due to an NII beat.

We continue to see stable asset quality, but situation remains fluid. We revised our estimates for FY20-22E and now value the stock at 0.8x FY22E BVPS, with a revised target price of Rs. 503 and continue to retain BUY as valuation looks attractive at current levels. Corona update and impact on industry Coronavirus pandemic continues to disrupt economy with number of infected people crossing +1.4mn globally (~90k deaths). India imposed a 21 day nation-wide lockdown (from 25th Mar) to contain the spread and could potentially extend it for few...

IndusInd Bank (IIB) hosted an analyst call to address the implications of Covid-19 on its portfolio.

NIM improved; Asset quality stable for now IndusInd Bank (IIB), a part of the Hinduja Group, provides loans for vehicles, property, etc. in its consumer finance division, while the corporate banking...