Q1FY24 Preview: IndusInd Bank: NII seen at Rs. 59,566 million, PAT at Rs. 19,836 million

17 Jul 2023 , 07:32 AM

Result date: 18^th July, 2023

Recommendation: Buy

Target price: Rs. 1,500

(Source: IIFL Research)

IndusInd Bank is likely to post healthy loan growth, and 14.4% growth in Net Interest Income (NII) over the year-ago quarter.

As the Bank’s microfinance and CV business normalize, its asset quality and slippages are likely to improve. The Bank’s net interest margin could remain stable on a sequential basis. Its credit costs could moderate, while provision coverage ratio could remain strong.

Important management insights to watch out for:

• Traction in deposits
• Performance of restructured portfolio
• Flow of NPAs from restructured pool

Rs. Million	June 2023 estimates	YoY change	QoQ change
NII	59,566	14.40%	13.57%
PPOP	37,313	11.70%	7.94%
Profit After Tax (Rs. mn)	19,836	26.43%	16.52%

Source: Brokerage Reports