IndusInd Bank Q4 PAT seen up 25% at Rs 214.7 cr

Private sector lender IndusInd Bank is expected to report a profit after tax of Rs 214.7 crore in the fourth quarter of FY12, a massive growth of 25% as compared to Rs 171.8 crore in a year ago period.

Net interest income is seen going up by 17% to Rs 454.5 crore from Rs 388 crore year-on-year.

Expectations
 
*Margin compression likely due to high cost of funds

*Q3 NIMs: 3.25% / Expected Q4 NIMs: 3.18%

*Expected to post above-industry loan growth of 30% 

*Deposit growth expected at 25%

*Traction in fee income expected to drive overall non-interest income

*In 3Q, bank reported slippages of Rs 67 crore - no negative surprises expected here

*Good asset quality performance but concern is high exposure to CV segment

*One of the 3 banks that has hiked savings rate – at 6%
--Last quarter saw impact of this in terms of new customer acquisition (up 10%) & volumes of savings deposits (up 22%)
--Should see further improvement this quarter as well