IndusInd Bank Q4 results review: What HSBC, Jefferies and other brokerages make of the lender's earnings report
IndusInd Bank shares fell 2 percent in intra-day deals today, April 26, after some brokerages cut EPS (earnings per share) estimates for the private sector lender despite it posting a 15 percent jump in its March quarter (Q4FY24) net profit. The bank reported a 15 percent rise in net profit at ₹2,349 crore in Q4FY24 versus a net profit of ₹2,043 crore in the year-ago period. Meanwhile, net loans grew 18 percent, outpacing the 14 percent growth in deposits.
Net interest income - the difference between interest earned and paid - also rose 15 percent to ₹5,376 crore in Q4FY24 while the net interest margin of the lender stood at 4.26 percent versus 4.28 percent last year. Its gross non-performing assets (GNPAs) fell to 1.92 percent in Q4FY24 as against 1.98 percent logged in the same quarter last year. On the other hand, net NPAs for the quarter came in at 0.57 percent in the quarter under review, improving from 0.59 percent on a year-on-year basis.
Operating expenses for the quarter ended March 31, 2024, increased by 24 percent to ₹3,803 crores as against ₹3,066 crore for the corresponding quarter of the previous year. HSBC: The brokerage maintained a 'buy' rating for the stock with a target price of ₹2,020, indicating a 35 percent upside. A significant reduction in the slippage ratio was a major positive, while other metrics matched expectations.
The outlook for loan growth remains strong, and the net interest margin (NIM) is expected to stay stable, supported by a favorable loan mix and effective liquidity management. Consistently strong asset quality could lead to a re-rating of the stock, it said. The brokerage has slightly lowered its EPS estimates by 2–3.5 percent for fiscal years 2025–27.
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