IndusInd Bank Ltd. share price target

IndusInd Bank reported muted operating performance during Q2FY20 on a sequential basis (YoY numbers are not comparable due to Bharat Financial merger). Weak PPoP growth and higher provisions leading to sequential decline of 2% in consolidated (IIB + Bharat Financial) net profit to Rs 1,433 cr. NII of the bank grew marginally by 2% QoQ to Rs 2,844 cr vs. our estimate of Rs 2,952 cr. Soft growth in NII and other income leading to lower PPOP growth of 1% sequentially. Due to accelerated provisioning of Rs 355 cr, PCR of the bank jumped to 50% vs. 43% QoQ...

Owing to the slowdown, IndusInd Bank's credit growth witnessed moderation as growth was at 21% YoY. There was overall moderation in credit growth. However, de-growth within the corporate book due to repayment, slowdown in auto & subdued microfinance growth due to flood in multiple states impacted growth. On a sequential basis, consumer finance book grew 3.5% while growth in corporate book remained flat. Further, the management guided at credit growth of ~20-25% for FY20E. The bank's focus continue on garnering retail deposits, which grew 28% YoY. In...

IndusInd Bank saw robust NII growth of 32% led by moderate loan growth of 21% YoY. Deposit grew at 23% YoY with CASA ratio at 41.5%. Its asset quality for the quarter was maintained (GNPA 2.19% vs 2.15% QoQ) and its credit cost of 18 bps was in line with management guidance for FY20 (Credit Cost ~60-65 bps). It reported 3.4% sequential decline in Q2FY20 profit dented by higher provision. (PCR at 50% vs 43% QoQ). Q2FY20 PAT without accelerated provisions stands at `16.7 bn, up 81% YoY and 16% QoQ. It saw a decline to its exposure to potentially stressed group from 1.9% in 4QFY19 to 1.1% in 2QFY20 and expected to reduce to 0.8% by Oct'19 through repayments....

Indusind Bank reported Q2FY20 net profit at Rs13.8 bn although much in-line with the consensus estimates but lot more disappointments came on slowing growth and higher SMA 2 accounts. Loan growth has slowed down considerably to 21% in Q2 from 28% in Q1, excluding BHAFIN numbers,...

IndusInd Bank's (IIB) Q2FY20 PAT grew 52% YoY to Rs 14bn, largely due to 32% YoY growth in NII and 5bps QoQ NIM expansion to 4.1%.

10 October 2019 despite higher provisions of INR7.4b and mark down of DTAs. NII stood at INR29.1b (8% miss led by slower loan growth), while the margin improved 5bp QoQ to 4.1%. PPoP grew 32% YoY to INR26.2b (3% miss), while PBT increased 34.5% YoY to INR18.8b (6% miss). For 1HFY20, IIB reported PPoP/PAT grew by 34%/45% YoY to INR52.1b/INR28.3b. Other income grew 31% YoY to INR17.3b (in line), while core fees increased 21% YoY led by growth in loan processing fees and FX income. Loan growth moderated to 21% YoY led by slowdown in both corporate and consumer portfolios.

Higher slippages were dampener with uptick in retail, at same time stressed asset book is reducing from repayments which is comforting IIB profitability of Rs13.8bn (PLe: Rs15.3) was lower than estimates mainly on back of marginally slower PPOP and higher provisions undertaken to enhance PCR from the benefit of lower tax rate. Few disappointments have been on (i) sharp slowdown in loan growth rate to 21% YoY and only 14% YoY loan growth if BHAFIN book is used to rebase (ii) Higher slippage than run...

As expected, Bank delivered good set of numbers, with consolidated PAT rising 38% for the quarter. Alongside strong balance sheet growth, Advances grew 28.4%, 25% growth levels guided ahead. Both corporate & consumer finance loan book grew handsome at 20%. Management is in line with its stated planning cycle 4(2017-2020). Giving guidance of 25-30% loan growth, it stood at 28% during Q1. At a current branch network of 1700, bank intends to strength its retail presence & targets to reach 2000 branches within the stipulated time by 2020. NIM's stood at 4.05% higher by 13bps...

IndusInd Bank, a part of the conglomerate Hinduja Group, provides a variety of loans for housing, vehicles, property, etc. apart from the regular deposit generating activities. The corporate banking division offers a wide range of...

IndusInd Bank saw a robust growth in advances with a 28% jump YoY on consolidated basis & 26% on standalone basis. It's asset quality for the quarter (GNPA: 2.15% vs. 2.10% QoQ) was maintained and it's credit cost of 15 bps was in line with the management guidance for FY20. Deposit grew by 26% with CASA ratio maintained at...