IndusInd Bank Q3FY22 Preview: NII seen at Rs37.7 billion, PAT at Rs13.4 billion

24 Jan 2022 , 08:34 AM

Result date: 29th January, 2022
Recommendation: Buy
Target price: Rs. 1,200

IndusInd Bank registered YoY loan growth of 10.1% in the quarter. Deposits grew at a robust 19.1% on a YoY basis and kept the CASA ratio stable on a sequential basis at 42.2%. While, NII is estimated to grow 11%, Non-interest income could increase 23% relative to the year ago quarter. The bank’s net interest margin is estimated at 4.1%, stable on a sequential basis.

Lower provisions will aid net profit of the bank during the quarter.

All eyes will be on the headline numbers as well as fine print around its asset quality. The bank’s credit costs are likely to remain elevated even as the bank maintains higher provision coverage ratio.

Important management insights to watch out for:
– Stress in MFI loan book
– Trends in and outlook for restructured assets
– Outlook on credit growth across segments

Rs. Billion	December 2021 estimates	YoY change	QoQ change
NII	37.7	11%	3%
Total Income	58.0	15%	6%
PPOP	33.8	14%	5%
PBT	17.8	60%	17%
PAT	13.4	62%	17%

Source: Company, IIFL Research