IndusInd Bank Ltd. share price target

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...

The bank reported its numbers in consolidation with that of Bharat Financial for the first time in Q1FY20. Strong growth can be clearly seen in its headline numbers with core business growth and impact of acquisition of BFIL. NII beat our forecast and grew significantly by 34% YoY along with a 22% growth in its core fee income. Ex-BFIL, NII growth was a little weak at 14% YoY. Consolidated PAT growth is at 38% YoY. Momentum in balance sheet continued with a loan/ deposit growth of 28%/26% driven by growth across segments. GNPA/NNPA remained flattish sequentially at 2.1%/1.2%. NIMs stood at a healthy 4.1%. Bank's aggregate exposure net of provisions to Zee/ADAG/DHFL is at 1.7% of loan book. Large part of this could potentially slip...

Post recognition of IL&FS; account as NPA, which impacted earnings in Q4FY19, asset quality remain steady with GNPA inching up ~6% QoQ to | 4200 crore. Likewise, GNPA ratio increased ~5 bps QoQ to 2.15%. Bank's exposure to stressed companies (Media, Diversified, and Housing Finance) stood at 1.67% of the loan book net of provisions. As of Q1FY20, these exposure remain standard. Credit cost came at ~22 bps & the management has reiterated that the credit cost for the FY20E to be contained at ~60 bps. Operational performance continue to remain healthy led by strong NII...

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...

IndusInd Bank has reported healthy net profit for the merged entity at Rs 1432.50 crore for the quarter ended June 2019 (Q1FY2020). The figures for Q1FY2020 include the figures of Bharat Financial Inclusion on account of completion of merger. The merger with Bharat Financial Inclusion resulted in...

Good show, future NPAs key monitorable !!! Profitability rebounded in Q1 after a bad Q4 largely driven by stable asset quality and merged synergies. PAT excluding BHAFIN grew by 18% yoy led by strong asset growth, margin upsurge &...