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IDBI Capital Report
IndusInd Bank Ltd. reported stable net interest margins (at 4.3%) QoQ led by utilisation of excess liquidity during the quarter. Credit growth remain strong at 21.3% YoY versus 21.5% YoY (Q1 FY24) led by growth across the segments.
Management remains confident of strong credit growth to continue (18-23%). Micor finance portfolio which remains key concern area reported rise in gross non-performing asset (at 4.52% versus 4.39% QoQ).
Deposit growth stood at 14% YoY versus 14.6% YoY (Q1 FY24). Asset quality remains stable as GNPA stood at 1.93% versus 1.94% QoQ led by higher write offs.
Net interest income grew by 18% YoY while NIMs remain stable. Profit after tax grew by 22% YoY due to decline in provisions (down 14% YoY).
IndusInd Bank maintains overall provision of Rs 15.2 billion as contingent provisions.
We maintain ‘Buy' rating with a target price of Rs 1,675 at price/adjusted book value of 1.9 times FY25. Need to watch out for MFI portfolio.
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