IndusInd Bank Ltd, incorporated in the year 1994, is a banking company with a market cap of Rs 72306.44 Crore.
IndusInd Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2020.
Investment Rationale
IndusInd Bank reported a stable 4QFY21 with an in line performance. Loan growth is showing some signs of a revival, while the deposit franchise is improving steadily, enabling moderation in funding costs. Asset quality witnessed a sequential improvement with strong provision coverage. The bank holds a Covid-related provision buffer at 75bps of loans. Restructured book stood at 2 per cent of loans (a slight increase from the guided 1.8 per cent), and is largely from the Vehicle portfolio.
Motilal Oswal said, the rise in Covid-19 cases and the recent lockdown in a few states would be key to watch out for in the near term as MFI and CV are the most affected segments. Motilal Oswal cut its FY22E/FY23E earnings estimate by 15 per cent/6 per cent as it expects provisions to stay elevated and estimate credit cost of 2.5 per cent in FY22E. Motilal Oswal expects the lender to deliver RoA/RoE of 1.7 per cent/14.4 per cent in FY23E. Motilal maintains a buy with a target price of Rs 1,200 per share (1.7x FY23E ABV).
Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 9199.71 Crore, up 3.52 per cent from last quarter’s Total Income of Rs 8887.28 Crore and up 0.45 per cent from last year same quarter’s Total Income of Rs 9158.80 Crore. The bank has reported net profit after tax of Rs 926.07 Crore in latest quarter.
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.
