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NEW DELHI: IndusInd Bank is set to report its September quarter results on Monday.
Brokerages largely expect the lender to register a sold loan growth of 20-28 per cent but expect some pressure on net interest margin.
Commentary on expected synergies from Bharat Financial merger and ILFS exposure will be keenly watched, say experts.
Brokerage Nomura India sees IndusInd reporting a strong 28 per cent YoY growth in loan growth but expects margin to compress by 5 basis points sequentially with fixed rate asset book and higher wholesale funding translating to 20 per cent YoY NII growth.
“Weak core fee growth and trading gains will lead to PPOP growth of 17 per cent YoY.
Credit cost and asset quality trends will remain steady.
Details on the merger of Bharat Financials and expected synergies from that will be keenly watched,” it said.
ICICI Securities expects a loan growth of 27 per cent YoY to Rs 1,57,056 crore led by both corporate finance and consumer finance segment.
Within consumer and CV financing spaces, credit cards and personal loans would continue with healthy growth, it said.
“Margins are expected to be strong at 3.8-3.9 per cent range.
This would lead to NII growth of 20.5 per cent YoY to Rs 2,194 crore.
PAT of Rs 1,091 crore is expected, up 24 per cent YoY while asset quality should remain largely steady.
However, the management commentary on exposure to ILFS and progress on merger with Bharat Financial would be keenly observed,” the brokerage added.
Brokerage Prabhudas Lilladher expects the bank to report NII of Rs 2,230 crore for the quarter, up 22.5 per cent YoY against Rs 1,821 crore in the year-ago quarter.
Profit after tax (PAT) is seen at Rs 1,081.20 crore, up 22.8 per cent YoY over Rs 880 crore in the year-ago quarter.
Margins are expected to contract 10 basis points YoY to 3.9 per cent from 4 per cent in the same quarter alst year.
Brokerage Sharekhan expects the lender to continue with its 20 per cent-plus loan growth momentum while it expects the bank to maintain its margins.
The high yielding consumer finance and CV segments are expected to drive growth, it said.
Kotak Securities is expecting a slower revenue growth, in addition to some pressure on NIM.
“We expect NIM to decline 10 bps QoQ.
We expect limited asset quality stress and GNPL of 1.2 per cent, up 5 bps QoQ.
Coverage ratio will remain similar to the previous quarter."
