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IndusInd Bank is seen posting a 16-25 per cent increase in its net profit year-on-year and 5-6 per cent on a sequential basis, as per estimates by brokerage firms.
Loan growth for the bank is seen at 21 per cent, driven by both the retail and wholesale segments, with BNP Paribas revising its price target multiple on the bank to 1.8 times from 1.5 times, citing strong momentum in NBFC-adjacent credit segments that has increased confidence “in the bank’s continued loan growth acceleration”.
As per provisional numbers, advances of the bank grew 21 per cent yoy to ₹3.1 lakh crore as at the end of September, and deposits rose 14 per cent to ₹3.5 lakh crore. The CASA (current account and savings account) ratio declined to 39.4 per cent from 42.4 per cent a year ago.
Shares of the bank, which will declare its results on Wednesday, were trading with a negative bias ahead of the results.
Net interest income (NII) is seen growing 16-20 per cent yoy but remain flat on quarter. As the sector continues to battle higher cost of funds, margins are expected to remain under pressure but are unlikely to decline further significantly due to the higher share of EBLR-linked loans, according to analysts.
“As the cost of funds peaks in one or two quarters and the lending mix shifts in favour of better-yielding consumer loans versus corporate loans, NIMs should find support and we expect it to stabilise in the current range,” Antique Broking said.
BOBCAPS expects margins for the bank to expand by 6 bps on quarter led by a rise in the share of high-yielding assets, especially vehicle and microfinance.
While credit costs are expected to remain elevated, incremental slippages should normalise helping boost asset quality, analysts said, pegging the gross NPA ratio at 1.8-1.9 per cent and net NPA at 0.5 per cent.
The performance of the restructured portfolio, and trajectory of and management guidance on margins will be key monitorables, they said.
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