IndusInd Bank Q1 Result Preview: Net profit may rise 33%, NII likely to grow 18% YoY amid healthy loan growth

livemint.com:

IndusInd Bank’s net profit is expected to rise around 33% year-on-year (YoY) to ₹2,180 crore. The bank’s net interest income, the difference between interest earned and interest expended, is likely to grow 18% YoY to ₹4,850 crore. The pre-provision operating profit (PPOP) is expected to see a growth of around 10-12% YoY, while fee income growth in Q1FY24 is expected to be around 19% YoY.

Meanwhile, margins are expected to remain stable QoQ at 4.29% due to higher share of fixed rate loans. The lender’s slippages are expected to be at ₹1,350 crore (2.2% of trailing loans, annualized) as compared to ₹1,600 crore (2.7% of trailing loans) in the last quarter, according to Morgan Stanley. It expects credit cost to moderate to 135 bps from 146 bps last quarter.  Also Read: HDFC Bank Q1 Results: HDFC Bank Q1 net profit rises 30% YoY to ₹11,952 crore; NII jumps 21% “Deposit growth was 15% YoY, broadly steady vs.

last quarter and remains higher than system deposit growth of 12% YoY as of mid-June. Sequentially, deposits grew 3.2%, compared with system deposit growth of 2.9% for the quarter through mid-June. Within overall deposits, deposit growth from retail & small business customers was strong at 5.4% QoQ," Morgan Stanley said.

Analysts at brokerage firm Prabhudas Lilladher expect IndusInd Bank’s loan growth to be superior than industry at 3.8% QoQ which could drive NII growth of 1.5% QoQ. The gross non-performing assets (GNPA) could rise by 5 bps QoQ to 2.03%. Motilal Oswal Financial Services expects IndusInd Bank’s loan growth to remain healthy, while deposit traction would be closely monitored.