IndusInd Bank Q1 PAT seen up 27% to Rs 228 cr

Private sector lender IndusInd Bank - the first bank that will announce its quarterly earnings today, is expected to report a growth of 27% year-on-year and 2% quarter-on-quarter in net profit of Rs 228 crore for the quarter ended June 2012, according to CNBC-TV18 estimates.

Net interest income is seen going up by 24% YoY and 4% QoQ to Rs 485 crore during the April-June quarter of 2012. Analysts on average expect net interest income (NII) growth to be led by sustained credit growth. In the previous quarter (Q4FY12) its NII was up 20% and credit growth increased 34% YoY & 8% QoQ. Advances growth was led by the consumer finance book (48% YoY) and within consumer finance - growth was led by cars, commercial vehicles & utility vehicles in the previous quarter. Analysts expect advances to grow in the range of 28-30% in first quarter. Margins are likely to improve slightly or may be remained stable. In the quarter ended March 31, 2012, net interest margin went up by 4 basis points QoQ to 3.29 (In Q4FY11, it was at 3.5). Fee income is expected to remain strong during the quarter. In Q4, fee income increased 61% YoY to Rs 292 crore. Company had mentioned to brokerages that their fee income will grow faster than overall book in Q1. Asset quality was healthy and stable in the earlier quarter. Gross non-performing assets (NPAs) have seen a consistent downtrend - In Q4, gross NPA ratio was down 0.97% as against 1.02% QoQ. Gross slippages were low at Rs 84 crore (1% of annualized advances) in the previous quarter. Net NPAs remained stable at 0.27%. Restructured portfolio came in at 0.26% of loans in the January-March quarter as against 0.22% in previous quarter.