IndusInd Bank Q1FY20 Result Expectations

Margins are likely to remain flat due to interest reversals on IL&FS exposure negating the increases in MCLR.

Jul 12, 2019 08:07 IST India Infoline News Service

IndusInd Bank
IndusInd Bank Q1FY20 Result Expectations
  • NII – Rs2,772cr, up by 18.4% yoy due to ~30.6% yoy rise in loan book and flat margins.
  • PPOP – Rs2,260cr, up by 24% yoy due to higher NII and non-interest income.
  • PAT – Rs950cr, decline of 8.3% yoy due to higher provisions.
Q4FY19 performance highlights:
  • NII – Rs2,230cr, up by 11% yoy largely due to strong loan growth
  • PPOP – Rs2,070cr, up by 17% yoy due to higher NII and non-interest income.
  • PAT – Rs360cr, decline of 62% yoy due to higher provisions.
Remarks:
  • Loan growth would trend at 30.6% yoy with contributions from both retail and corporate loans.
  • Margins are likely to remain flat due to interest reversals on IL&FS exposure negating the increases in MCLR. We have built-in moderation in fee-income growth.
  • To watch for: 1) provisioning on IL&FS exposure, 2) commentary on BHAFIN merger, 3) announcements on succession planning, 4) corporate fee income growth.

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