Comments
Prabhudas Lilladher
IndusInd Bank (Accumulate)
CMP: ₹945.35
Target: ₹1,070
IndusInd Bank delivered 32 per cent year-on-year growth in core revenues led by uniform growth in core fees and NII. Margins expanded by 20 bps quarter-on-quarter to 3.88 per cent aided by recent capital raising, revival in consumer business loan growth and steady growth in savings account deposits. The bank aspires to achieve about 40 per cent current account savings account mix and about 4 per cent net interest margin over the medium term as it increases its branch network to 1,200 (from 854 currently), benefits from the revival in high-yielding commercial vehicle loans and maintain its SA growth momentum.
IndusInd Bank reported relatively stable trend in non-performing loan ratios though corporate/restructured portfolio witnessed slightly higher slippages. IIB also sold ₹41 crore to ARC, while also recovered ₹20 crore from ARC and now has total outstanding SR book of ₹229 crore. Provisions increased due to higher standard asset provisioning on integration of gems & jewellery portfolio while restructured p/f remain stable at 0.63 per cent.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.