PL Stock Update: Indusind Bank Q1'24 business update

PL Stock Update: Indusind Bank Q1'24 business update – Gaurav Jani – Research Analyst, Prabhudas Lilladher Pvt Ltd

-- Loan growth was healthy at 4% QoQ and 21% YoY to Rs3.01trn

-- Deposit accretion was 3% QoQ and 15% YoY to Rs3.47trn

-- CASA stood at 40% down 20bps QoQ and 330bps YoY

-- Granular deposits (retail & small biz) are up by 5.4% QoQ and 21.4% YoY to Rs1.51trn.

PL view

-- Loan growth for IIB may be a tad higher to system (likely to be ~3% QoQ).

-- However, retail deposit accretion remains a key and granular deposits have been inching up with share of 43.4% as at Q1'23 vs 42.5% in Q4'23 and 41.0% in Q1'23, which is a positive.

-- At CMP of Rs1367 stock is trading at 1.6x FY25E ABV. We have a BUY rating on the stock with a TP of Rs1530 (1.8x on Mar'25E ABV).