Dolat Capital: IndusInd Bank’s Profitability Concerns Remain In Q1 
IndusInd Bank Ltd. pamphlets are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Dolat Capital: IndusInd Bank’s Profitability Concerns Remain In Q1 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

IndusInd Bank Ltd. reported a healthy net interest income growth at 16% YoY. However, pre-provision operating profit growth at 10% YoY was supported by high treasury gains, excluding which core PPoP de-grew by 10% YoY.

Total Covid-19 related provisions stood at 60 basis points of advances or Rs 12 billion.

Moratorium by value was at 16% (14% excluding micro finance institutions) for the bank, of which 90% is secured. Moratorium levels were at 50% in May-end.

Management’s conservative stance on growth and provisioning along with additional disclosures on ‘banks board bureau and below’ (at over 30%) book provide some comfort.

However, building a more sustainable franchise will have its medium term challenges.

Click on the attachment to read the full report:

Dolat Capital Indusind Bank Q1FY21 Result Update.pdf


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