IndusInd Bank Q1 results: Up to 85% drop in profit, asset quality pressure likely

IndusInd Bank Q1 results preview: IndusInd Bank is likely to report up to 85 per cent drop in net profit for the June quarter on 20 per cent-plus drop in net interest income (NIM), with net interest income (NIM) likely expanding sequentially.  Investors will also focus on updates regarding the search for a new CEO. Ahead of the private lender's Q1 results on July 28, its shares were trading 0.75 per cent higher at Rs 849.20 on Wednesday.

Nomura India sees IndusInd Bank's profit at Rs 350 crore, down 84 per cent. NII is seen at Rs 4,150 crore, down 23 per cent. Pre-provision operating profit is seen at Rs 1,760 crore, down 56 per cent YoY. This brokerage expects 4 per cent degrowth in loans and flattish deposit growth.

MOFSL sees IndusInd Bank's net profit for the quarter at Rs 571.90 crore. It sees net interest income (NII) falling 23.1 per cent to Rs 4,156.70 crore. It expects business growth for IndusInd Bank to remain modest and asset quality to deteriorate further. Margins could be under pressure and that the credit costs trend will be keenly monitored.

InCred Equities sees profit falling 49.90 per cent YoY to Rs 1,100 crore on 14.4 per cent YoY drop in NII at Rs 4,600 crore. NIM is seen at 3.45 per cent against 2.25 per cent in the March quarter and 4.25 per cent in the year-ago quarter. Credit Costs (bps) is seen at 178 bps in Q1 against 272 bps in Q4 and 122 bps in the same quarter last year.

YES Securities, which sees 80 per cent drop in Q1 profit said the sequential loan growth will be in the 0.5 per cent ballpark due to idiosyncratic growth trajectory. NII growth will be higher than average loan growth due to certain one-offs in 4QFY25.

"Consequently, NIM will be  higher sequentially. Sequential fee income growth will be lower than loan growth. Opex growth would  slightly lead business growth. Slippages would be lower on sequential basis. Provisions will be lower  on sequential basis as the bank had created provision on additional MFI slippages in 4QFY25," it said.