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IndusInd Bank - Well Positioned In Core Domains, Liability Profile Supportive: Nirmal Bang

IndusInd Bank - Well Positioned In Core Domains, Liability Profile Supportive: Nirmal Bang

<div class="paragraphs"><p>A IndusInd Bank Ltd.'s branch in Bengaluru. (Photo: BQ Prime)</p></div>
A IndusInd Bank Ltd.'s branch in Bengaluru. (Photo: BQ Prime)

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Nirmal Bang Report

IndusInd Bank Ltd. remains attractive despite the run-up in the stock post Q1 FY23 earnings. The bank is well positioned to benefit from the upcycle in some of its key domains (micro-loans and commercial vehicles).

New retail-centric initiatives outside these segments are also showing healthy results, such as in non-micro finance institution unsecured lending and home loans.

Overall loan compound annual growth rate is expected at 16% over FY22-25E. Faster growth in high-margin retail products is expected to support the management’s net interest margin guidance of 4.15-4.25% despite the relatively lower external benchmark lending rate-linkage.

IndusInd Bank has improved its liability profile, with retail deposits now accounting for 41% compared to 31% in FY20. The bank has planned a few more initiatives which are expected to support further retailisation of the liability profile.

Overall, we think that IndusInd Bank’s asset-side construct is supportive of its strategy to offer higher deposit rates.

Click on the attachment to read the full report:

Nirmal Bang Indusind Bank-Company Update.pdf

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