IndusInd Bank Q3 Results Review - Credit Growth To Be Strong, Earnings Outlook Robust: Anand Rathi

Anand Rathi Report

IndusInd Bank Ltd.’s Q3 FY23 profitability improved, with a 1.86% return on asset (up 8 basis points QoQ) and stable asset quality. Key positives were-

1. strong disbursements in the vehicle finance book,

2. strong retail deposit growth,

3. sturdy balance sheet with 70% coverage and a Rs 21.9 billion provision buffer (0.8% of loans) and

4. strong liquidity and capitalisation.

With credit growth expected to be strong and moderating credit costs, IndusInd Bank's earnings are expected to be robust.

Risks: Lumpy slippage in the corporate book; volatility in asset quality from the micro finance institution book.

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More Research Reports On IndusInd Bank's Q3 FY23 Results Review

• Earnings Progression On Track; Re-Rating To Continue: Motilal Oswal

• Stable Asset Quality; Restructured Portfolio Moderated To 1.25%: Dolat Capital

• Robust Credit Growth; Net Interest Magins Improved: IDBI Capital

• Material Rise In Cost Of Deposits Indicative Of Wholesale Deposit Dependence: Yes Securities

• Delivering On The Guided Path: ICICI Securities

• Inline Performance; Steady Growth To Drive Valuation: ICICI Direct

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