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IndusInd Bank Q3 Results Review - NIMs Stable QoQ; Deposits Growth Lower: IDBI Capital

Continuation of business strategy under the new CEO has resulted in navigating through asset quality concerns better.

<div class="paragraphs"><p>IndusInd Bank's webpage. (Source: Banks official facebook page)</p></div>
IndusInd Bank's webpage. (Source: Banks official facebook page)

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IDBI Capital Report

IndusInd Bank Ltd. consistently maintained the net interest margins (at 4.3%) for last five quarters backed by improvement in yields. Credit growth remains strong led by growth across the segments.

We expect 18% compound annual growth rate (FY23-26) loan growth backed by retail portfolio. Deposit growth slowdown further, while management guided for credit-deposit ratio to remain in the historical range of 85-90%.

Micro finance institution portfolio which remains key concern area reported stable gross non-performing asset (at 4.4% versus 4.5% QoQ).

Profitability remains strong led by lower credit cost as management utilized Rs 2.20 billion of contingent provisions.

IndusInd Bank maintains overall provision of Rs 13 billion as contingent provisions.

We have moved to FY26E estimates and expect earnings per share to grow at 18% CAGR (FY23-26).

We maintain ‘Buy’ rating with a new target price of Rs 1,900 (Rs 1,675) at price/adjusted book value of 1.9 times FY26.

Click on the attachment to read the full report:

IDBI Capital IndusInd Bank Q3FY24 Results Review.pdf

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