IndusInd Bank - Q3FY21 First Cut - ICICI Direct

(CMP - Rs. 846, MCap - Rs. 64084 crore)

Modest overall performance with rise in proforma NPA

Q3FY21 Earnings Summary

- IndusInd Bank posted modest set of numbers for Q3FY21 with NII increasing by 10.8% YoY and 3.9% QoQ to Rs. 3406 crore. Other income for the quarter increased sequentially by 9.8% to Rs. 1705 crore. Operating expenses were under control as a result cost-to-income was down by ~171 bps YoY to 41.8%, however, it was up sequentially ~41 bps which can be attributed to rise in business activity. Provisions for the quarter were elevated at Rs. 1854 crore, but down 5.6% sequentially. Overall PAT as a result of slight sequential decline in provisions and some improvement in top-line the bank posted a profit of Rs. 853 crore, up 31.8% QoQ and was ahead of our estimates

- On the asset quality front, the headline numbers suggest improvement as GNPA and NNPA ratio declined to 1.74% and 0.22% versus 2.21% and 0.52% QoQ, respectively. However, this was benefitted due to standstill norms. Proforma NPA numbers showed some increase in asset quality stress. GNPA and NNPA on proforma basis were up by 61 bps and 9 bps to 2.93% and 0.70% respectively

- The Bank has made regulatory, floating, counter cyclical and/or contingent provisions for Covid-19 related stress, taking the total amount of such provisions to Rs. 3,261 crores as of December 31, 2020, including an amount of Rs. 400 crore in respect of borrower accounts restructured in accordance with Resolution Framework for Covid-19 related stress

- Credit growth on yearly basis was subdued at 1.9% YoY (calculated) while sequentially there was some momentum in loan book as it increased by 3.9%

- The bank's capital adequacy stands at healthy levels of 16.34%

We will be coming out with a detailed report soon.

Shares of INDUSIND BANK LTD. was last trading in BSE at Rs.846.25 as compared to the previous close of Rs. 802.6. The total number of shares traded during the day was 640391 in over 16920 trades.

The stock hit an intraday high of Rs. 860.5 and intraday low of 816.7. The net turnover during the day was Rs. 538725800.

Source : Equity Bulls

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