IndusInd Bank - Growth Outlook Steady; RoA To Reach Sustainable ~2% Mark: Motilal Oswal

"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..Motilal Oswal Report.IndusInd Bank Ltd. has been delivering consistent performance with both asset quality and return ratios improving steadily. The bank is well poised to report further improvement in operating performance as all key vectors (credit cost, margins and opex) continue to move in the right direction, unlike for most other banks. The steady loan growth (of 19% compound annual growth rate over FY24-26E) and a more favorable asset mix toward retail will continue to support margins, especially with the shift in the interest rate cycle. IndusInd Bank aims to improve upon its current account and savings account mix to more than 45%, while increasing the mix of retail deposits to 45-50% of the overall deposits. Asset quality ratios have improved, while continued moderation in slippages, dissolution of restructured assets (have declined to 0.5% versus peak of 3.6% in Q2 FY22), and contingency buffer of 0.5% of loans provide further comfort. IndusInd Bank is well capitalized with CET-1 of 16.3% and any further capital infusion by promoters to increase the stake in the bank would further aid capitalisation levels. We estimate IndusInd Bank to report 22% earnings CAGR over FY24-26E, resulting in a return on asset/return on equity of 2.0%/17.3%. IndusInd Bank remains our preferred 'Buy' in the sector and we reiterate our 'Buy' rating with a target price of Rs 1,900 (premised on 1.9 times September-25E adjusted book value)..Click on the attachment to read the full report:.Delhi Sees 10% Month-On-Month Spike In EV Sales In December.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 - Growth Outlook Steady; RoA To Reach Sustainable ~2% Mark: Motilal Oswal

Multiple levers to enable 22% earnings CAGR over FY24-26E

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

IndusInd Bank - Growth Outlook Steady; RoA To Reach Sustainable ~2% Mark: Motilal Oswal

Multiple levers to enable 22% earnings CAGR over FY24-26E

Choose a plan

Follow Us

DOWNLOAD THE APP