IndusInd Bank Q2 Results Review - Weak; Steering Through Near-Term Challenges; Reiterate 'Buy': 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.’s profit after tax declined 40% YoY/ 39% QoQ at ~Rs 13.3 billion (17% miss adjusted for contingent provision of Rs 5.25 billion). Net interest income grew 5% YoY to Rs 53.5 billion (in-line), while other income declined 10.5% QoQ to Rs 21.85 billion (14% miss). Net interest margin contracted sharply by 17 basis boints QoQ to 4.08%.Loan book grew 13% YoY (2.7% QoQ), led by corporate and commercial books. Deposits grew 15% YoY (3.5% QoQ), led by faster growth in term deposits. Growth of MFIs declined sharply by 12% QoQ.Fresh slippages increased 17% QoQ to Rs 17.9 billion, primarily due to a rise in slippages in the consumer finance book to Rs 16.8 billion. Gross/net non-performing asset ratios increased 9 bp/4 bp QoQ to 2.11%/0.64%. IndusInd Bank holds a total contingency buffer of Rs 15.25 billion as of Sep-24. We cut our earnings estimates by 16.7%/8.7% for FY25/26, leading to an RoA/RoE of 1.6%/13.6% by FY26. Reiterate Buy with a target price of Rs 1,500 (premised on 1.5 times FY26E adjusted book value). Progression on asset quality (MFI business) and RBI’s approval for a fresh term for the MD and CEO remain key near term events to monitor..Click on the attachment to read the full report:.Danish Power IPO Allotment Today; Steps To Check Status Online And GMP Details.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 Q2 Results Review - Weak; Steering Through Near-Term Challenges; Reiterate 'Buy': Motilal Oswal

Progression on asset quality and RBI’s approval for a fresh term for the MD and CEO remain key near term events to monitor for the bank, says the brokerage.

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IndusInd Bank Q2 Results Review - Weak; Steering Through Near-Term Challenges; Reiterate 'Buy': Motilal Oswal

Progression on asset quality and RBI’s approval for a fresh term for the MD and CEO remain key near term events to monitor for the bank, says the brokerage.

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