BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
IndusInd Bank Ltd.'s loan book composition makes its profitability profile vulnerable to economic cycles. Notably, more than 70% of the bank's credit exposure is to segments like small fleet operators within commercial vehicles, equipment financing, loans against property, business banking, micro finance institution and two and three wheelers.
In view of the fragile earnings profile of these segments during cycles of longer volatility, IndusInd Bank has witnessed higher stress in its credit metrics and return ratios than large private sector banks due to the Covid-19 related disruptions.
Majority of its credit segments are still facing headwinds in terms of elevated gross delinquency and weak credit demand.
In a normalised business environment, IndusInd Bank's profitability is likely to revert to mean but re-emergence of a higher credit risk environment would further deteriorate the fundamentals (credit growth, credit yield and credit cost).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
