Shares of IndusInd Bank were trading on a flat note ahead of Q2 earnings set to be announced today. IndusInd Bank stock fell 0.52 per cent to Rs 1216 against the previous close of Rs 1223 in the afternoon session on BSE. On Nifty, the stock fell 0.76 per cent to Rs 1214. IndusInd Bank shares were trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. In a year, the stock of IndusInd Bank has gained 1.61 per cent and risen 36.73 per cent in 2022. Total 0.64 lakh shares of the firm changed hands amounting to a turnover of Rs 7.91 crore on BSE.
The market cap of the bank stood at Rs 94,068 crore.
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Here’s a look at what brokerages expect from the September quarter earnings of the private sector lender.
Emkay Global sees a 43.3 per cent YoY rise in profit at Rs 1,643 crore on a 14.8 per cent YoY rise in net interest income (NII) at Rs 4,199 crore. Net interest margin (NIM) is expected to be flat at 4.1 per cent. Nirmal Bang Institutional Equities expects profit to rise 63.9 per cent to Rs 1,879.50 crore. It expects NII to rise 15.6 per cent YoY to Rs 4,229.40 crore.
Motilal Oswal Securities said the asset quality of the lender will remain under watch. MFI slippages and restructuring book will be key monitorables. The brokerage expects IndusInd’s profit to grow 55.9 per cent to Rs 1,790 crore.
According to YES Securities, the lender is expected to report a 62.3 percent rise in Q2 profit to Rs 1,807 crore. On a quarter-on-quarter basis, the lender is likely to report a 12.7 per cent rise in profit. Net interest income (NII) is seen climbing 19 percent to Rs 4351 crore in the September quarter. On a quarter-on-quarter basis, the lender is likely to report a 5.5 per cent rise in NII.
“Sequential loan growth is healthy due to bounce-back in microfinance, among other reasons. Sequential NII growth would be healthy as well due to positive loan mix changes and yield on advances evolving higher at a faster pace than cost of deposits due to repricing of externally benchmarked loans, implying net interest margins expansion on a sequential basis. Sequential fee income growth would be reasonable. Treasury income would be weak but not as much as Q1 as government bond yield has been sequentially flattish. Provisions would be flattish to somewhat lower on sequential basis,” said YES Securities in its earnings preview.
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In its September quarter business update, the bank said advances rose 18 per cent year-on-year (YoY) and 5 per cent quarter-on-quarter (QoQ). Advances stood at Rs 2,59,647 crore as of September as against Rs 2,20,808 crore a year back. Deposits climbed 15 per cent YoY from Rs 2,75,473 crore in the September 2021 quarter to Rs 3,15,824 crore as of September 2022. On a quarter-on-quarter basis, deposits rose 4 per cent.
In the June quarter of the current fiscal, the lender reported a 64.4 per cent year on year (YoY) rise in net profit. Net profit climbed to Rs 1,603 crore in Q1 against profit of Rs 975 crore in the year-ago period. Net interest income climbed 15.8 per cent to Rs 4,125 crore in Q1 against Rs 3,563.7 crore in the same period last year. Interest earned rose 8 per cent to Rs 8,182 crore in Q1 against Rs 7,575 crore in the same quarter last fiscal. Its June-quarter provisions and contingencies fell to Rs 1,251 crore in Q1FY23 against Rs 1,779 crore in Q1FY22.
