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A significant moderation in loan growth, a rise in slippages, a sharp increase in provisioning, a run down in deposits and a fall in return ratios — were the key highlights of IndusInd Bank’s March quarter results.

Yet, the stock rallied about 22 per cent in the past week. A broadly in-line performance — because much of the negative news was already priced-in a month ago when the management had highlighted the fall in its deposits and disruption across segments — and the fact that the stock is trading at comfortable valuations, have possibly led to the stock’s upmove.

That said, uncertainty in earnings persists, and the pace of delinquencies could accelerate. The bank, for now, has made a provision of ₹23 crore towards accounts where moratorium has been extended, and another ₹260-crore floating provision for Covid-19 impact.

The loan growth slipped to 11 per cent y-o-y and can remain at those levels, as the bank re-orients its deposits.

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