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Nirmal Bang Report
IndusInd Bank Ltd. remains confident about credit growth. While last quarter’s growth was driven by the corporate segment, over the medium to long term, retail is expected to grow at a higher rate.
Retail disbursements have returned to pre-Covid-19 levels and corporate growth is expected to pick up further post realignment and resolution of legacy issues.
Work on building a granular liability franchise continues, as retail deposits have been growing (up 48% YoY) despite cutting rates.
Term deposit rates differential versus large banks has reduced and is now 40-50 basis points with scope for further reduction.
Barring the lag in micro finance institution collections in Kerala and West Bengal, overall asset quality seems under control.
IndusInd Bank has clearly stated that it would not shy away from taking necessary provisions. Slippage risks from the restructured book are low as the repayment behaviour so far seems comfortable.
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