IndusInd Bank advances ahead of Q3 results
Analysts expect the lender to clock a 30 per cent rise in net interest income (NII).
By ETMarkets.com |
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NEW DELHI: Shares of IndusInd Bank advanced nearly in Tuesday’s trade ahead of its December quarter results scheduled for later in the day.
The private lender is seen reporting a 50-60 per cent jump in year-on-year (YoY) rise in profit for the December quarter, but the numbers will not be comparable on a YoY basis due the bank's merger with Bharat Financial Inclusion that took effect on July 4 last year.
Analysts expect the lender to clock a 30 per cent rise in net interest income (NII), steady asset quality and low cost of funds for the quarter, even as loan growth may moderate to sub 20-per cent level, led by slowdown in Motown.
Following the development, the scrip rose 0.55 per cent to hit a high of Rs 1,549.05. The scrip has underperformed the market by rising just 4 per cent in last one-year date compared with 16.65 per cent rise in the BSE Sensex.
IndusInd may report a 19.4 per cent rise in advances at Rs 2.07 lakh crore, said ICICI Securities. It expects IndusInd to report 59 per cent YoY rise in profit at Rs 1, 566 crore.
Another brokerage Motilal Oswal Securities pegs profit growth at 53.2 per cent at Rs 1,508.70 crore. It sees NII for the quarter rising 30.2 per cent to Rs 2,979.70 crore.
The management has highlighted exposure to most talked stressed groups, but any incremental addition or provisioning towards the same will keep credit cost volatile, said Edelweiss Securities that expects some provisioning on the front.
The private lender is seen reporting a 50-60 per cent jump in year-on-year (YoY) rise in profit for the December quarter, but the numbers will not be comparable on a YoY basis due the bank's merger with Bharat Financial Inclusion that took effect on July 4 last year.
Analysts expect the lender to clock a 30 per cent rise in net interest income (NII), steady asset quality and low cost of funds for the quarter, even as loan growth may moderate to sub 20-per cent level, led by slowdown in Motown.
Following the development, the scrip rose 0.55 per cent to hit a high of Rs 1,549.05. The scrip has underperformed the market by rising just 4 per cent in last one-year date compared with 16.65 per cent rise in the BSE Sensex.
IndusInd may report a 19.4 per cent rise in advances at Rs 2.07 lakh crore, said ICICI Securities. It expects IndusInd to report 59 per cent YoY rise in profit at Rs 1, 566 crore.
Another brokerage Motilal Oswal Securities pegs profit growth at 53.2 per cent at Rs 1,508.70 crore. It sees NII for the quarter rising 30.2 per cent to Rs 2,979.70 crore.
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The management has highlighted exposure to most talked stressed groups, but any incremental addition or provisioning towards the same will keep credit cost volatile, said Edelweiss Securities that expects some provisioning on the front.
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