IndusInd Bank may post over 25% YoY jump Q1 net profit; key factors to watch

NEW DELHI: Private sector lender IndusInd Bank is likely to report double-digit rise in net profit and net interest income for the quarter ended June 30, 2017.

HDFC Securities sees 26.30 per cent year-on-year rise in net profit for the lender at Rs 830 crore. Net interest income of the bank is likely to jump 26 per cent YoY to Rs 1,710 crore.

The brokerage house sees 22.50 per cent YoY rise in pre-provision operating profit (PPOP) at Rs 1,510 crore.

Shares of the bank were trading 0.59 per cent up at Rs 1,569 ahead of the announcement of its financial results later in the day. HDFC Securities has a ‘Buy’ on IndusInd Bank with a target price of Rs 1,663.

JM Financial believes IndusInd Bank may post 28.10 per cent, 28.30 per cent and 27.50 per cent YoY jump in NII, PPOP and net profit for the first quarter ended June 30, 2017.

The brokerage house in a research report said, “Large corporate lenders will continue to post weak loan growth. However, mid-sized private lenders like IndusInd Bank (IIB) and YES Bank are expected to continue with strong growth driven by market share gains, structured lending products and refinancing opportunities. We expect healthy growth in the retail focused private lenders like HDFC Bank and IIB. For our private banking universe, we expect a loan growth of 14.3 per cent YoY in 1QFY18.”

Factors to watch
Comments on additional provisions made in Q4.
Asset quality and comments on divergence
Comments on growth and NIM