Q4FY22 Preview: IndusInd Bank: NII seen at Rs91.1 billion, PAT at Rs36.9 billion

27 Apr 2022 , 02:26 PM

Result date: 29^th April, 2022
Recommendation: Buy
Target price: Rs1,260

IndusInd Bank’s Net Interest Income (NII) could grow 13% in the March 2022 quarter on a year-on-year basis, led by loan growth of 12.6%. Non-interest income though could witness some impact arising from lower treasury income.

Margins could remain stable at 4%. The bank is likely to enhance its buffers and provision coverage and yet, the overall credit costs are
likely to drop significantly.

Consequently, the Profit After Tax (PAT) growth could outpace growth in total income during the quarter, both sequentially and over the year-ago quarter.

Important management insights to watch out for:
·         Asset quality trends, particularly in the bank’s MFI business and vehicle portfolio
·         Updates on restructuring
·         Credit demand across segments

Rs Billion	March 2022 estimates	QoQ change	YoY change
Net Interest Income (NII)	40.0	5%	13%
Total Income	60.3	6%	13%
Pre-Provisioning Operating Profit	35.3	7%	13%
Profit After Tax (PAT)	14.6	18%	58%

Source: IIFL Research