IndusInd Bank Ltd. share price target

Driven by strong growth and stable NIM, IndusInd Bank (IIB) reported steady Q2FY24 PAT at INR 21.8bn with RoA at 1.9%. Despite a better top-line (1.5% beat) and in-line provisions, PAT was ~5% lower than our estimates due to higher opex. Retail slippages continued their improving trajectory, though rise in corporate slippages led by an isolated exposure (INR 1.68bn) disappointed.

Steady performance; guided for better H2FY24

Q1 PAT growth robust at 30% YoY to Rs 21.2bn on NII growth and lower provisions which offset elevated opex

Despite higher opex YoY, IndusInd Bank (IIB) reported strong Q1FY24 PAT at Rs21.24bn (up ~32% YoY) driven by strong NII (up 18% YoY) and ~21% YoY dip in provisions. As detailed in our recent sector note (Link), IIB is our preferred pick and the thesis remains intact.

Good overall performance