The bank’s net profit for the quarter ended March is seen rising 43.4% on year to Rs 2,009 crore, according to the average of estimates given by 8 brokerages.
Net interest income, the difference between interest earned and interest expended, is seen growing 25% on year to Rs 4,989 crore.
The private sector lender is scheduled to release its earnings on Monday.
The stock has been an underperformer this year. It has given more than 8% negative returns compared to the 2% losses in Nifty Bank index.
Here’s summarising analysts’ expectations for the March quarter:ICICIdirect
IndusInd Bank’s advances saw strong growth of 21.3% YoY and 6.3% QoQ to Rs 2.89 lakh crore. Deposits registered a growth of 14.6% YoY and 3.4% QoQ to Rs 3.36 lakh crore.
CASA ratio was at 40% during Q4FY23 vs. 42.7% in Q4FY22.
NII is expected to grow at 17.8% YoY and 4.4% QoQ to Rs 4,694 crore while non-interest income to grow 11.2% YoY to Rs 2,114 crore. C/I ratio to be at ~46% levels.
Subsequently, PAT is seen growing 48% YoY and 2.8% QoQ to Rs 2,015 crore. Overall asset quality trend is expected to improve sequentially with GNPA at ~2% levels.
Management commentary on growth would be key to watch.
Kotak Equities
It expects weak operating profit growth (~5% YoY) led by lower contribution from treasury and high operating costs.
Loan growth is healthy at 17% YoY, while NIM is likely to be stable QoQ at 4%.
Non-interest income would be subdued due to lower treasury income. Deposit growth at 15% YoY is showing stable trends. It expects RoE at 15% this quarter.
It expects provisions to keep declining led by lower slippages and better asset quality trends. Both the MFI and vehicle finance portfolio is showing improving trends.
It’s building slippages of 2.3% (Rs 14 billion). Key focus area would be the cost of funds given the sharp rise in raising deposits.
Emkay Global Financial
It expects healthy growth coupled with nearly stable margins and contained provisions to support profitability. Slippages are likely to remain at a moderate level, similar to Q2 levels.
Motilal Oswal Securities
It expects loan growth to see a healthy pickup; deposit traction would be closely monitored.
Expect asset quality to remain under watch. Slippages from MFI and restructuring book to be key monitorables.
Expect margin to remain stable at 4.3% Credit costs to witness a gradual moderation as PCR remains healthy
Prabhudas Lilladher
Expect earnings driven by a decent loan growth of 21% YoY. Expect margins to slightly uptick (5 bps) sequentially to 4.65%. With asset quality improving, expect provisions to remain range bound.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)