IndusInd Bank Q1 Review - Navigating Well; Undemanding Valuations: Prabhudas Lilladher
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Prabhudas Lilladher Report
IndusInd Bank Ltd.’s earnings of Rs 9.75 billion (our estimate: Rs 9.97 billion) was largely in-line with net interest income growth of 8% y-o-y in line with loan growth, better fees and and a relatively elevated but flat provisions.
Slippages of Rs 27.6 billion (4.5% of loans) were high with bulk from retail but also saw decent recovery/upgrades given the collection efficiency improving in June/July 2021.
Prospects of recovery/upgrades remain good but should not see before end of FY22 and slippages should be lower from H2 FY22 onwards.
Highlight since the lockdown has been a strong comeback on deposits led from retail taking current account and savings account to 42% from 40% and growing by average 20% which has helped IndusInd Bank on funding cost with further room ahead.
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