Private sector lender IndusInd Bank is set to announce its financial performance for the last quarter of FY12 on Friday. Investors were upbeat about the bank ahead of its fourth quarter earnings on stock exchanges.
indusind stock expired more than 987.45 each 12.95 or 1.33% on BSE today. At closing price, the market cap of IndusInd was approx. 76,500 crores.
The board of directors of the bank will consider the dividend for the financial year FY22 on April 29.
What to expect in Q4?
In their note, Kajal Gandhi, Vishal Narnolia and Sameer Sawant Research Analysts of ICICI Securities said, “IndusInd Bank posted decent growth in advances (13% YoY) and deposits (15% YoY). 239307 crore and 293685 crores respectively during Q4FY22, while the CASA ratio remained largely stable at 42.8%.
All three said, “NII will grow at 9.7% year-on-year” 3878 crore, while non-interest income may grow 14% year-on-year 2032 crores. There may be a marginal improvement in cost-to-income to 42.5%.”
“Later on, PAT may increase by 54.5% yoy” 1353 crores. The overall asset quality trend is expected to improve sequentially to the level of 2.3%, analysts further said in their note.
Management commentary on the growth outlook would be worth watching.
It needs to be noted that, IndusInd Bank has already declared its provisional performance of Balance Sheet as on March 31, 2022.
Data provided on BSE, IndusInd asked to report net advances of 2,39,307 crore 13% yoy and 5% qoq. Deposits grew by 15% y-o-y and 3% qoq. 2,93,685 crore. The CASA ratio was 42.8% in Q4FY22 versus 42.2% in Q3FY22 and 41.8% in Q4FY21.
9MFY22:
IndusInd Bank made a net profit of 3,404 cr in 9MFY22 growing by 70% 2,004 crore in the same period last year. Net interest income increased for the nine months ended December 31, 2021 11,016 crore as compared to 9,993 crore for the last nine months, which is an increase of 10% YoY.
The quality of the bank’s loan book was stable.
Gross non-performing assets accounted for 2.48% of gross advances as on December 31, 2021, as against 2.77% as on September 30, 2021. Up to 0.80% on 30th September, 2021.
The provision coverage ratio was consistent at 72% as of December 31, 2021.