IndusInd Bank Q1 Result Review - Strong Growth, Stable NIM; Expect The Trend To Sustain: ICICI Securities

"BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Despite higher opex YoY, IndusInd Bank Ltd. reported strong Q1 FY24 profit after tax at Rs 21.24 billion (up ~32% YoY) driven by strong net interest income (up 18% YoY) and ~21% YoY dip in provisions. As detailed in our recent sector note, IndusInd Bank is our preferred pick and the thesis remains intact. We believe IndusInd Bank is uniquely placed as growth (18-19% YoY for FY24-25E) has tailwinds from revival in key domains (vehicle and micro finance) which due to strong yields should also enable stable net interest margin. With sharp reduction in RSA (down to 66 basis points) and macro tailwinds, we see healthy moderation in credit costs, driving return on asset higher. Overall, we estimate the bank delivering 1.85%-1.9% RoA for FY24-25E with 15-16% return on equity. We increase our target price to Rs 1,700 (versus Rs 1,550), valuing the stock at ~1.9 times (versus ~1.7 times) FY25E adjusted book value. Maintain 'Buy'..Click on the attachment to read the full report:.IndusInd Bank Q1 Result Review - Focus On Growth, Stable Profitability Metrics: Systematix.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

IndusInd Bank Q1 Result Review - Strong Growth, Stable NIM; Expect The Trend To Sustain: ICICI Securities

Slippages and gross non-performing asset continue improving trajectory.

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IndusInd Bank Q1 Result Review - Strong Growth, Stable NIM; Expect The Trend To Sustain: ICICI Securities

Slippages and gross non-performing asset continue improving trajectory.

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