IndusInd Bank share price falls over 2% after Q3 results; Time to buy the stock? Here’s what analysts say
₹1,568.00 apiece on the BSE. IndusInd Bank on Thursday reported a rise of 17.3% in standalone net profit at ₹2,297.8 crore for the quarter ended December 2023, compared to ₹1,959.2 crore in the year-ago period. The bank’s net Interest Income in Q3FY24 grew by 18% YoY and 4% QoQ to ₹5,296 crore.
Net Interest Margin at 4.29% as against 4.27% YoY and 4.29% QoQ. Gross NPL and net NPL ratios were largely unchanged at ~2% and 0.6%, respectively. Slippages were marginally higher at 2.2% of loans, with bulk of the slippages coming from retail loans, especially the vehicle financing book.
Credit costs were at 1.2%. RoA was at 1.9% and RoE was at ~15%. Read here: IndusInd Bank Q3 Results: Net profit rises 17% to ₹2,297 crore, NII up 18% YoY; 5 key highlights Analysts mostly remain bullish on IndusInd Bank amid steady margins and improving retail deposit mix.
Here’s what brokerages have to say on IndusInd Bank Q3 results and IndusInd Bank shares: IndusInd Bank reported an in line performance in 3QFY24, led by healthy NII growth and controlled provisions. Healthy provisioning in the MFI portfolio and moderation in overall slippage run-rate will contribute to a further reduction in credit cost. Additionally, the presence of a contingent provisioning buffer of 0.4% of loans provides further comfort, said Motilal Oswal.
It estimates 21% earnings CAGR over FY24-26, leading to ROE of 16.2% in FY25. The brokerage reiterated its ‘Buy’ rating on the stock with a target price of ₹1,900 per share, premised on 1.9x Sep’25E ABV. Kotak Institutional Equities retained its ‘Buy’ rating on IndusInd Bank and raised the target price to ₹1,800 per share from ₹1,600 earlier, valuing the bank at 1.8X book and 13X FY2026 EPS for RoEs at 15%.
Read more on livemint.com
