PL First Cut - Indusind Bank Q1FY24 - Good quarter with beat on all fronts

Indusind Bank Q1FY24–Good quarter with beat on all fronts

--NII was ahead at Rs48.7bn (PLe Rs47.4bn) +18% YoY while credit growth was 3.9% QoQ/21.4% YoY

--NIM was a beat at 4.7% (PLe 4.6%) driven by better loan yields at 12.87% (PLe 12.65%)

--Deposit growth was 14.6% YoY and 3.2% QoQ. CASA was largely flat QoQ at ~40%.

--Other income at Rs21.2bn was higher (PLe Rs20.45bn) mainly driven by higher fee income.

--Opex was a slight miss at Rs32.5bn (PLe 31.9bn) largely due to other opex.

-- PPoP at Rs38.3bn was 3.0% ahead of PLe due to better NII and fees.

--GNPA was 10bps lower to PLe and reduced by 4bps QoQ to 1.94% likely due to lower slippages

--Provisions were a tad lower at Rs9.9bn (PLe Rs10.3bn).

--PAT was higher at Rs21.2bn (PLe Rs20.5bn)

--At CMP of 1388 stock is valued at P/ABV of 1.6x on FY25E ABV.