YES Securities' research report on Indusind Bank
Slippages were still somewhat elevated for IIB, partly contributed to by a relatively chunky corporate account: Slippages for the quarter contained a corporate account worth Rs 1.75bn that slipped from the restructured book. Management guided that slippages would range between Rs 9-12bn or about 1.7% of asset book. Restructured advances were at 0.84% of total advances. Provisions were Rs 10.3bn, down by -3.3% QoQ and -29.5% YoY, which translated to a credit cost of 142 bps for the quarter compared with 156 bps in 3Q. Management guided that the credit cost would be in the range of 110-130 bps.
Outlook
We maintain ‘Buy’ rating on IIB with a revised price target of Rs 1410: We value the bank at 1.8x FY24 P/BV for an FY24E/25E RoE profile of 14.3%/15.2%.
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