Buy Indusind Bank; target of Rs 1630: Axis Direct

Axis Direct's research report on Indusind Bank
Indusind Bank (IIB’s) Q4FY17 PAT (adjusted for one-offs) of Rs 8.3 bn (up 34% YoY) was broadly in line with our expectations on the back of higher other income. Provisions included one-off provision of Rs 1.2 bn as per RBI’s directives against a standard account in cement sector. Q4FY17 was strong operationally loans up 28%, deposits up 36%, NIM stable at 4% and terminal CASA(%)at 37%.

Outlook
IIB is one of few banks reporting robust growth when industry growth is down to single digit. We roll forward our estimates to FY19, valuing IIB at 3.7x FY19 P/ABV to arrive at TP of Rs 1,630 (15% upside from CMP).

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