IndusInd Bank will be reporting its Q2 earnings and the Street is anticipating that NII growth could be at four-quarter high.
As per business updates, deposits are up 20.7 percent year-on-year and 3 percent quarter-on-quarter. The bank saw strong traction of retail deposits coming in with CASA ratio remaining stable at about 42.1 percent and retail deposits being up about 5.7 percent sequentially.
The loan growth on a year-on-year basis had come in at about six-quarter high of 10.2 percent and about 10-quarter high in terms of sequential loan growth of 5.26 percent. So, credit deposit ratio has improved, which means that net interest margin (NIM) could largely remain stable or improve on a sequential basis.
Commentary on MFI portfolio, how it behaves and how much provisions will be made over there, will be seen very closely.
Also, commentary with respect to credit cost and loan growth going ahead will be seen closely.
Phillip Capital brokerage expects a slippage of Rs 2,500 crore when compared to Rs 2,762 crore in the previous quarter.
So, we are working with a poll of 12.5 percent NII growth on a year-on-year basis and 3.50 percent sequentially. While profit after tax (PAT), we are expecting it to grow 57.2 percent year-on-year and about 2.6 percent sequentially.