Private sector lender IndusInd Bank is likely to deliver another quarter of strong performance on Wednesday. Shares in IndusInd Bank traded 1 per cent higher at Rs 439.10 on the BSE against 0.1 per cent gain in the broader BSE Banking index.
IndusInd Bank's net interest income - the difference between interest earned and interest paid - is seen rising 26.5 per cent to Rs 545 crore in the December quarter against Rs 431 crore in the corresponding quarter last year. Net profit is estimated at Rs 265 crore, a 29 per cent jump over Rs 206 crore in the same quarter last year.
Net interest margin, a key measure of profitability for banks, is seen expanding by 15-20 basis points on a sequential basis. NIMs stood at 3.25 per cent in the last quarter.
In the September quarter, IndusInd Bank had reported Rs 518 crore in NII and Rs 250 crore in net profit..
The Mumbai-based lender is likely to report a 25 per cent rise in loan growth.
Domestic brokerage IIFL recommended a "buy" call on IndusInd Bank ahead of earnings. IndusInd Bank has impressive loan profile and resilient fee franchise, the brokerage said. Asset quality will remain strong and 29 per cent earnings CAGR over FY12-15 is likely, IIFL said.
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