IndusInd Bank will report its first quarter numbers on Friday. It is the first time that the company will release consolidated numbers after its acquisition of Bharat Financial Inclusion.
The loan growth is expected to be north of 30 percent. Bharat Financial had been growing in the region of 35 percent while IndusInd Bank in the previous quarter grew at 28-29 percent. The net interest margin (NIM) will improve given the fact that Bharat Financial has a higher net interest margin profile and IndusInd Bank reported a 3.6 percent net interest margin in the previous quarter which is at a 15 quarter low.
The gross non-performing assets (NPA) ratio will improve given the fact that 2.1 percent was recorded in the previous quarter and this quarter they will have that denominator effect as well as repayments coming in from certain stressed portfolios.
On the issue of stressed portfolios which was at 1.9 percent in the previous quarter, analysts on street are expecting a decline of 1.4-1.5 percent.
poll on standalone basis on IndusInd Bank suggest that net interest income will grow by 30 percent, while on account of higher provisions the net profit can decline by 4.5 percent year-on-year. Including Bharat Financial numbers the net interest income is expected to be close to Rs 3,000 crore while the net profit can be at Rs 1,280 crore.