Net profit for the quarter is likely to fall 3% year-on-year, according to an average estimate of four brokerages. Net interest income (NII), meanwhile, is seen rising 7% year-on-year.
The lender had already reported 13% year-on-year growth in its advances at Rs 3.15 lakh crore, while the same grew just 3% quarter-on-quarter. Meanwhile, deposits rose 15% year-on-year and 4% quarter-on-quarter.
Here’s what analysts expect from IndusInd Bank’s Q2:
Motilal Oswal
Expect business growth to remain healthy. Expect asset quality to remain broadly stable Expect margins to slightly moderate. Credit costs and opex to be monitored.
Kotak Equities
Operating expenses growth has slowed down but weak loan growth (13% YoY) is translating into weak operating profit growth. NIM (reported) is likely to decline 10 bps QoQ at 4.1%. Deposit growth at 15% YoY. We see RoE at less than 15% this quarter.
We expect provisions to increase due to higher slippages from the MFI portfolio, but trends appear to be less worrisome as compared to other players. We are building slippages of 2% (Rs 1800 crore). The key focus area would be the cost of funds, trends on operating expenses growth and situation on the ground pertaining to the MFI portfolio.
Prabhudas Lilladher
Loan growth to be at 2.6% QoQ while NII to improve by 2.7% QoQ. Margin is expected to expand by 1 bp. Provisions are expected to increase by 4.8% QoQ. Asset quality to worsen by 5bps. Credit cost would increase by 3bps.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
