IndusInd Bank shares slip into the red ahead of Q1 results. Analyst views

Shares of IndusInd Bank on Tuesday slipped into the red ahead of its June quarter results. The stock, which hit a high of Rs 1,409.10 earlier today, was quoting 0.33 per cent lower at Rs 1,388 by noon. This is even as analysts are expecting the private lender to report 23-33 per cent jump in net profit for the June quarter on a 15-20 per cent rise in net interest income (NII).

Analysts expects IndusInd Bank's net interest magin (NIM) to come in marginally lower on a sequential basis while they see credit costs and asset quality to be stable. All eyes would be on the outlook on retail deposit mobilisation, they said.

IndusInd Bank commanded a market capitalisation of Rs 1,07,669.30 crore and a price-to-book value of 2.14 times.

The bank’s provisional business numbers indicate strong growth momentum – loan growth of 21 per cent YoY (3.8 per cent QoQ) and deposit growth of 14.6 per cent YoY (3.2 per cent QoQ). The strong business tailwinds in the MFI segment and the vehicular finance portfolio could be key growth drivers, Elara Securities said in a note.

Sharekhan expects IndusInd Bank to report 31.3 per cent YoY surge in net profit at Rs 2,105 crore compared with Rs 1,603 crore in the same quarter last year. NII is seen rising 17.4 per cent YoY to Rs 4,844 crore from Rs 4,125 crore in the corresponding quarter of last year. Pre-provision operating profit may rise 14.1 per cent YoY to Rs 3,871 crore from Rs 3,394 crore, the brokerage said.

Motilal Oswal expects IndusInd Bank to report 33.5 per cent YoY rise in profit at Rs 2,180 crore. It sees NII rising 18.4 per cent YoY to Rs 4,880 crore. It expects asset quality and slippages to improve further given normalisation in MFI and CV businesses and sees credit cost to witness a gradual moderation as PCR remains healthy. Gross NPA as percentage of gross advances is seen at 1.9 per cent against 2 per cent in March and 2.4 per cent in the year-ago quarter.

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