IndusInd Bank will be reporting its Q4FY19 numbers today. Here are key expectations.
Analysts are working with a profit degrowth for the first time in IndusInd Bank. Key highlight to watch in the bank will be the slippages and the provisions. Nomura expects slippages of around Rs 2,400 crore compared to about Rs 420 crore in the previous quarter.
On the positive side, the loan growth is expected to remain strong at 23-25 percent, last quarter it was at 35 percent. Any improvement in the net interest margin (NIM), which was at 3.83 in the previous quarter, will be positive.
Sustaining the gross non-performing assets (NPA) below 1.2-1.3 percent will be positive. CNBC-TV18’s poll suggests net interest income (NII) growth of 25.5 percent while net profit can decline by 22 percent. However, if the bank makes adequate or more provision, the net profit can decline further.
- Provisions expected to remain elevated on account of IL&FS and other exposures
- Loan growth expected at 23-25 percent; need to watch CV book growth
- Net interest margins above 3.8 percent will be positive
- Gross NPA below 1.2 percent will be positive
- Quarterly credit cost expected to remain high due to IL&FS exposure
- Need to watch fee income growth with balance sheet growth