Private sector lender IndusInd Bank is expected to report a profit growth of 25.8 percent year-on-year at Rs 498 crore during January-March quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Net interest income, the difference between interest earned and interest expended, may expand 21 percent to Rs 941.5 crore in the quarter ended March 2015 from Rs 781.2 crore in same quarter last fiscal.
Analysts expect credit growth (which was 22 percent in Q3FY15) to be above industry average. Retail corporate mix titled towards corporate on sequential basis from 43:57 to 42:58 as of Q3 while vehicle finance business remained slow but commercial vehicle financing picked up as of Q3. The management, after December quarter earnings, had said Q4FY15 and Q1FY16 should see higher vehicle financing.
As far as asset quality is concerned, medium and heavy commercial vehicle segment saw improvement in gross as well as net non-performing assets. Restructuring of loans would be closely watched as bank saw some uptick in restructured accounts in December quarter.
Net interest margin improved 4 basis points sequentially to 3.67 percent in Q3, which is expected to be sustained between 3.5 percent and 3.7 percent.
Fee income will also be watched closely was it had slowed in Q3. In December quarter, core fee income moderated to 22 percent to Rs 522 crore against 30 percent in previous quarter led by investment banking being subdued (up 1 percent Y-o-Y while down 36 percent Q-o-Q).
In the latest news, IndusInd (on April 10) said it would acquire RBS’s diamond & jewelry financing business with loan book size approximately Rs 4,500 crore. Ramesh Sobti, MD & CEO of the bank had said jewellery financing business has been growing at 25-30 percent and would be margin accretive.
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