Moneycontrol
Get App
Last Updated : Jan 15, 2020 12:52 PM IST | Source: Moneycontrol.com

Accumulate IndusInd Bank; target of Rs 1640: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on IndusInd Bank with a target price of Rs 1640 in its research report dated January 14, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on IndusInd Bank


IIB reported earnings of Rs13.0bn (PLe: Rs15.4bn) was below our estimate largely on higher provisioning including an Rs2.5bn of accelerated provisioning to enhance PCR to 53% (`300bps up QoQ). Headline asset quality was steady on better asset recoveries & few write-offs but internals showcase higher than trend slippages in both corporate - largely emanating from known stress watch list & consumer - mostly in CV/Cards/MFI. Positives have been further improvement in NIMs by 5bps QoQ to 4.15%, strong SA growth of 30% YoY/11% QoQ. We believe, it will be very important to see new MD's strategy on corporate book given questions surrounding asset quality and retailization of liabilities, while asset quality and provisioning will remain higher from trend levels.


Outlook


We downgrade to Accumulate and retain TP of Rs1,640 (unchanged) based on 2.5x Sep FY22 ABV.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Jan 15, 2020 12:52 pm
Sections
Follow us on