Mumbai-based IndusInd Bank is all set to announce its quarterly results on Thursday. In Q1, the loan growth was around 28 percent. Here's what to expect from the lender today:
Operationally, it should be a strong quarter for the bank and the operating profit should come out well in terms of growth rate because loan growth is expected at over 25 percent.
The loan growth will primarily be driven by the retail portfolio — that’s a high yielding portfolio while you can see a bit of slowdown in the corporate portfolio. That should lead to net interest margin being sustained at 4 percent. Last quarter it was at 4.05 percent.
However, provisions have to be made especially on account of mark-to-market loss on DHFL, but do not expect slippages from Anil Dhirubhai Ambani Group (ADAG) as well as the Essel Group.
The gross non-performing assets (NPA) are likely to remain stable. They were at 2.15 percent in the previous quarter.
A net interest income (NII) growth of 5 percent is likely while net profit on account of higher provision can decline by 3.7 percent.