IndusInd Bank Q1 Results Review - Inline; Growth Outlook Remains Healthy: Motilal Oswal

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.IndusInd Bank Ltd. reported an inline Q1 FY24 performance with profit after tax at Rs 21.2 billion (up 30% YoY), aided by healthy net interest income growth (up 18% YoY) and lower provisions (down 21% YoY).Loan growth was healthy at 22% YoY to Rs 3.0 trillion with traction in both corporate and consumer finance books. Within the consumer book, growth was broad based, with notable outperformance in the utility vehicles (up 44% YoY) and credit cards segments (up 39% YoY). Micro finance institution loans was flat sequentially, due to the seasonality of business and Q1 generally being a weak quarter.Fresh slippages declined 14% QoQ to Rs 13.8 billion (2.0% annualised). This decline was primarily driven by a reduction in slippages within the corporate book, which decreased to Rs 0.4 billion from Rs 2.6 billion in Q4 FY23. Gross/net non-performing asset ratios improved 4 bp/1 bp QoQ to 1.94%/0.58%. Restructured book declined to 0.66% in Q1 FY24 from 0.84% in Q4 FY23. Management suggested for 18-23% loan growth under Planning Cycle six, while moderation in credit cost is expected to aid return on asset expansion.We estimate IndusInd Bank to deliver ~27% earnings CAGR over FY23-25, while its RoA/RoE would expand to 2.1%/17.5%. We reiterate our 'Buy' rating with a revised target price of Rs 1,600 (premised on 1.7 times FY25E adjusted book value)..Click on the attachment to read the full report:.IndusInd Bank Q1 Results: Profit Rises 30% On Higher Core Income, Lower Provisions .DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

IndusInd Bank Q1 Results Review - Inline; Growth Outlook Remains Healthy: Motilal Oswal

Restructured book declines to 66 basis points.

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