IndusInd Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 73217.80 Crore).
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 8887.28 Crore, up 1.78 % from last quarter Total Income of Rs 8731.52 Crore and down -2.06 % from last year same quarter Total Income of Rs 9074.55 Crore. The bank reported net profit after tax of Rs 830.41 Crore in latest quarter.
Investment Rationale
Loan growth has been showing signs of revival over the past few quarters, while the deposit franchise is also improving steadily – led by robust growth in retail deposits. As a result, funding costs would continue to moderate, but margins are likely to remain in a narrow range as banks’ liquidity position continues to improve. IIB has guided for a restructuring book of ~1.8%; however, the recent spike in COVID-19 cases and lockdown in key districts could impact the collection efficiency, particularly in the MFI book. Therefore, the brokerage expects the credit cost to remain elevated as the bank endeavors to maintain a PCR in excess of 70%. Nevertheless, an improving operating performance would enable the bank to report healthy return ratios.
Promoter/FII Holdings
Promoters held 13.4 per cent stake in the company as of Dec 30, 2020, while FIIs held 58.7 per cent, DIIs 14.8 per cent and public and others 13 per cent.
