- 19 Jan 2024
- ICICI Securities
INDUSIND BANK REPORTED HEALTHY PERFORMANCE ON BUSINESS GROWTH AND EARNINGS
INDUSINDBK - 817 Change: -1.25 (-0.15 %)News: IndusInd Bank reported healthy performance on business growth and earnings, however, higher than anticipated slippages came as a surprise. Advance growth continued at 20% YoY to ₹327057 crore, with traction in mid-corporate and retail segment. Margin remained steady at 4.29% resulting in 18% YoY in NII. While fee income grew 12% YoY, treasury gains led overall other income growth at 15% YoY. Continued investment kept opex elevated, credit cost remained in guided range at ~1.2% (annualised), post utilization from contingent reserves. Thus, PAT came at ₹ 2301 crore; up 17% YoY. Slippages remained higher than guidance at ~2.2% (annualised), however, GNPA ratio remained steady at 1.92%, owing to recovery and write-offs.
Views: Continued healthy business growth, focus on liabilities accretion and sustained margin remain positive. Slippages are expected to remain a tad higher than earlier expectation in FY24E, though is expected to gradual improve in FY25E. Healthy growth and steady RoA profile is seen to aid valuation.
Impact: Positive