IndusInd Bank Q3 PAT seen up 30% at Rs 451cr: Motilal Oswal

Motilal Oswal has come out with its third quarter (October-December) earnings estimates for the banking sector. The brokerage house expects IndusInd Bank to report a 4.8 percent growth quarter-on-quarter (growth of 30 percent year-on-year) in net profit at Rs 451 crore.

Net interest income is expected to increase by 5.7 percent Q-o-Q (up 20.6 percent Y-o-Y) to Rs 880.2 crore, according to Motilal Oswal.

Motilal Oswal's Report on IndusInd Bank:

Loan and deposit growth is expected to remain strong at 24/25 percent respectively during 3QFY15.

Re-pricing of short term liabilities might result in 5-10bp Q-o-Q improvement in margins to 3.7 percent.

Focus on investment banking and forex segment will aid healthy growth of 24 percent Y-o-Y in fee income. Trading profits (INR 8.5 billion v/s INR 4.9 billion in 2QFY15) would also support earnings.

Strong NII and non-interest income performance to help PPP to grow 23 percent Y-o-Y, though lower provisions will keep earnings growth strong at 30 percent Y-o-Y.

IIB trades at 2.9x FY17E BV and 15.1x FY17E EPS. Pickup in CV book growth to be a key catalyst for re-rating.

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