IndusInd Bank Q2 preview: Expect stable margin, asset quality; revenue, PAT may see healthy YoY growth

livemint.com:

₹2,123.6 crore, registering a growth of 32.5 per cent from ₹1,603.29 crore in the same quarter last year. Net interest income (NII), which is the difference between interest earned and interest expended, during Q1FY24 increased 18 per cent to ₹5,862.5 crore from ₹4,125.3 crore, YoY. Let's take a look at what experts and top brokerage firms expect from IndusInd Bank's Q2FY24 scorecard.

BOB Capital Markets (BOBCAPS) expects IndusInd Bank's PAT to grow 23.5 per cent YoY and 5 per cent QoQ despite a higher base. BOBCAPS expects strong loan growth of 21 per cent YoY driven by both retail and wholesale segments. It said the net interest margin (NIM) forecast of IndusInd Bank may increase 6bps sequentially due to a rise in the share of high-yielding assets, specifically the vehicle and MFI portfolios.

PPOP (pre-provision operating profit) is likely to rise 5 per cent QoQ due to strong business growth. Credit cost is expected to remain elevated. Asset quality set to remain stable QoQ with PCR (provisioning coverage ratio) at 71 per cent, BOBCAPS said.

(Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Brokerage firm Motilal Oswal Financial Services also expects IndusInd Bank's loan growth to remain healthy even as it said deposit traction would be closely monitored. Besides, margin and asset quality may remain broadly stable.

Motilal said IndusInd Bank's credit cost may witness a gradual moderation as PCR remains healthy. According to the estimates of Motilal Oswal, IndusInd Bank's net interest income may rise 17.6 per cent YoY while operating profit may see a growth of 12.3 per cent YoY in Q2FY24. Net profit of the bank may