IndusInd Bank share price rose over 3 percent in early trade on July 28, a day after the company reported the result for the quarter ended June 2021.
The private sector lender on Tuesday reported doubling of its consolidated net profit to Rs 1,016.11 crore in the June 2021 quarter, aided by healthy growth in retail loans and lower NPA provisioning.
The bank had posted a net profit of Rs 510.39 crore in the corresponding quarter of the previous financial year.
Its total income during April-June 2021 rose to Rs 9,362.76 crore from Rs 8,682.17 crore in the year-ago period, according to a regulatory filing by IndusInd Bank.
Interest income was up at Rs 7,574.70 crore, against Rs 7,161.73 crore a year ago.
Income from retail banking rose nearly 22 percent to Rs 5,685.53 crore in the June 2021 quarter, from Rs 4,674.06 crore in the year-ago quarter.
Here is what brokerages have to say about the stock and the company post the June quarter earnings:
UBS | Rating: Neutral | Target: Rs 1,100
Management expects H2 FY22 to see accelerated loan growth and also see the cost of deposits go down further as it cut deposit rates by 50 bps.
UBS raised loan growth estimates for FY22 to 13 percent.
CLSA | Rating: Buy | Target: Raises to Rs 1,350 from Rs 1,325
Its Q1 PPoP is in line with estimates, while slippage of Rs 2,700 crore was marginally higher than expectations.
The asset quality performance seemed manageable, while management intends to focus on growth as the second wave impact subsides.
Morgan Stanley | Rating: Overweight | Target: Rs 1,225
The Q1 bad loan formation at 2.1% of loans was good. The core PPoP of 8% was above the estimates; see good recovery in H2 FY22.
Goldman Sachs | Rating: Buy | Target: Rs 1,222
The company is well-positioned in certain businesses such as commercial retail and has a leadership position that will allow it to bounce back relatively quickly as recovery begins.
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Prabhudas Lilladher | Rating: Buy | Target: Rs 1,280
Prospects of recovery/upgrades remain good but it may not come before the end of FY22 and slippages should be lower from H2FY22 onwards.
Strong PCR of over 70% and 100bps of COVID related provision cushions balance sheet impact and the bank has managed the pandemic quite well.
Motilal Oswal | Rating: Buy | Target: Rs 1,200
The bank reported an inline operating performance in a challenging environment. Loan growth moderated, while the liability franchise continues to show an improvement, driving a consistent reduction in funding cost.
Higher provision coverage and contingent provisioning of 1% of loans provide comfort. We expect the bank to deliver an FY23E RoA/RoE of 1.7%/14.4%.
At 09:18 hrs, IndusInd Bank was quoting at Rs 998.95, up Rs 23.30, or 2.39 percent on the BSE.
The share touched a 52-week high of Rs 1,119.20 and a 52-week low of Rs 483.45 on 25 February 2021 and 04 August 2020, respectively.
Currently, it is trading 10.74 percent below its 52-week high and 106.64 percent above its 52-week low.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.What should investors do with IndusInd Bank post Q1 result: Buy, sell or hold? - Moneycontrol.com
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