IndusInd Bank - Stable Q4; Growth Concerns Remain: Dolat Capital
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Dolat Capital Report
IndusInd Bank Ltd.’s operating metrics were in-line, with net interest income and pre-provision operating profit growing by 9%/10% YoY respectively and largely stable net interest margin.
NIM was adversely impacted by higher liquidity during Q4 FY21 with 7% QoQ rise in deposits versus less than 3% growth in advances.
Asset quality trends were mixed with healthy provision coverage ratio at 75%, rise in standard provision buffers (excluding of general provisions) by Rs 6.3 billion to 0.8% of advances or Rs 17.5 billion, and superior asset quality trends in the micro finance institution book (slippages at 3% for FY21).
However, restructuring at 4% for the vehicle book seems higher than peers.
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