Q3FY24 Preview: IndusInd Bank: NII seen at Rs. 51,539 million, PAT at Rs. 22,412 million

17 Jan 2024 , 09:44 AM

Result date: January 18, 2023

Recommendation: Buy

Target price: Rs. 1,770    

(Source: IIFL Research)

Healthy loan growth is likely to aid IndusInd Bank’s performance for the December quarter. Deposits too are likely to maintain the growth momentum, with a slight moderation. The Bank’s Net Interest Income (NII) could grow 14.65% over the year-ago quarter.

Net Interest Margins (NIMs) are expected to remain stable. Slippages are likely to come lower sequentially as the September quarter numbers included slippage of a corporate borrower.

The Bank’s Profit After Tax or PAT could grow 14.15% as compared to the year-ago quarter.

Important management insights to watch out for:

• Trends in collections in VF/MFI
• Performance of the restructured portfolio
• Strategy around liabilities and progress thereof
• Segments where growth revival is seen 
• Outlook on VF business growth

Rs. Million	December 2023 estimates	QoQ change	YoY change
Net Interest Income	51,539	1.50%	14.65%
Profit After Tax	22,412	1.80%	14.15%

Source: Brokerage reports