PL First Cut – Indusind Bank Q2FY24

PL First Cut – Indusind Bank Q2FY24 – Gaurav Jani – Research Analyst, Prabhudas Lilladher Pvt Ltd

Indusind Bank Q2FY24–Stable quarter; better NII offset by higher opex, stable asset quality

◼️NII was ahead at Rs50.8bn (PLe Rs49.0bn) +18% YoY while credit growth was 4.7% QoQ/21.3% YoY

◼️NIM was a beat at 4.8% (PLe 4.6%) driven by better investment yields and lower funding cost

◼️Deposit growth was 14.0% YoY and 3.7% QoQ. CASA ratio declined by 60bps QoQ to 39.3%

◼️Other income was a bit lower Rs22.8bn (PLe Rs23.14bn) mainly driven by lower fees.

◼️Opex was a miss at Rs34.8bn (PLe 33.4bn) due to both staff cost and other opex

◼️PPoP at Rs38.8bn was largely in-line while core PPoP at Rs37.2bn was 1.4% below PLe

◼️Asset quality was stable and broadly in-line. GNPA/NNPA was 1.93%/0.57% while net slippages were a tad lower

◼️Provisions were a lesser at Rs9.7bn (PLe Rs11bn).

◼️PAT was higher at Rs21.8bn (PLe Rs20.8bn)

◼️At CMP stock is valued at P/ABV of 1.7x/1.5x on FY25/26E ABV.