IndusInd Bank shares edge up as brokerages forecast 43.3% rise in Q4 net profit

IndusInd Bank

The shares of IndusInd Bank traded 0.57 percent higher on the BSE at 10:25am, with the fifth largest private sector bank in India by market capitalisation all set to report its quarterly earnings at 5:30pm today.

According to the four brokerages polled by Moneycontrol, IndusInd Bank may post a 43.3 percent rise in its Q4 net profit on higher interest income. Motilal Oswal expects the highest rise in net profit at Rs 2,110.8 crore, up 50.7 percent from a year ago.

Brokerage house Kotak Institutional Equities expects the bank to report a net profit of Rs 1,812.6 crore, up 33 percent on-year and 7 percent sequentially. The net interest income (NII) is expected to rise 15.2 percent YoY and 2 percent quarter-on-quarter (QoQ) to Rs 1,062 crore. Kotak expects the pre-provision operating profit (PPOP) to rise 6 percent YoY and 4 percent QoQ to Rs 1,924.6 crore.

ICICI Direct predicts a 48 percent on-year growth in net profit at Rs 2,014.8 crore, which would also be 2.8 percent higher on-quarter. NII is expected to go up 17.8 percent YoY and 4.4 percent QoQ to Rs 4,693 crore. PPOP is likely to rise by 11.3 percent from the year-ago period and 0.7 percent from the previous quarter at Rs 3,704.7 crore, the brokerage house said.

Prabhudas Lilladher estimates IndusInd Bank’s net profit at Rs 1,926.5 crore, a rise of 41.5 percent YoY but 1.7 percent down from the previous quarter. NII is expected to rise 18.5 percent from the year-ago quarter and 5 percent sequentially to Rs 4,721.6 crore, the brokerage house said. It sees PPOP going up 14.9 percent YoY and 3.9 percent QoQ at Rs 3,825.5 crore.

IndusInd Bank has dropped by 8.61 percent since the start of this year, underperforming the benchmark Bank Nifty index which has corrected by 2.02 percent since the beginning of 2023.

On a five-year basis, IndusInd Bank has significantly underperformed the Bank Nifty index with a loss of 40.56 percent in its value during the entire period. The index has delivered a healthy return of 66.65 percent in this period.