IndusInd Bank Q4 Results Review - Improvement In Slippages Across Sub-Segments: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Despite elevated opex, IndusInd Bank Ltd. reported Q4 FY24 profit after tax of Rs 23.5 billion, up 15% YoY driven by 15% net interest income growth and ~13% YoY decline in provisioning. Return of assets remained strong at 1.9% for Q4 FY24 as well as FY24.Gross slippages improved QoQ across subsegments, though the bank has part consumed contingent provisions. We believe IndusInd Bank is well placed on growth, net interest margin and asset quality troika.IndusInd Bank has delivered amongst the highest compound annual growth rate (FY21-24) in retail deposits, which should sustain, fuelling superior ~18% CAGR in loans over FY24-26. Net interest marginis likely to remain stable, resulting in sector-leading ~17% CAGR in net Interest Income and pre-provision operating profit for FY24-26E.In our view, IndusInd Bank has 5–15 basis points improvement scope in each of NIM, opex to assets and credit costs over FY24-26E. Yet, we conservatively factor in cumulative ~5 bps return of assets expansion to 1.9% (FY25-26E), as we believe IndusInd Bank would be re-investing in the franchise and/or add contingent provision and/or elongate growth trajectory. Retain 'Buy'; target price unchanged at Rs 2,000..Click on the attachment to read the full report:.Nestle Q4 Results Review: Analysts See Limited Upside Amid Headwinds.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

IndusInd Bank Q4 Results Review - Improvement In Slippages Across Sub-Segments: ICICI Securities

Steady net interest margin and improvement in slippages; return of asserts stable at 1.9%

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