Buy Indusind Bank; target of Rs 1050: Prabhudas Lilladher

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26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Indusind BankIIB reported a steady quarter with Q3FY16 PAT growing by 30% YoY to Rs 5.81bn(PLe: Rs 5.84bn). Other income continues to remain buoyant, while NII improved36% YoY to Rs 11.73bn, slightly ahead of our estimates. Margins improved by 3bpsQoQ led by strong accretion in CASA deposits, pick‐up in retail loan growth and as benefits from recent capital infusion continues to pour in and now the bank is targeting NIMs of 4% over the medium term. GNPLs increased 13% QoQ led by slippages in corporate portfolio, while IIB sold assets worth Rs 530m to ARC taking outstanding SR book to Rs 2.6bn (0.3% of loans). We introduce FY18E and revise our PT to Rs1,050 based on Sep 2017 ABV (from Rs 1,070) as we fine‐tune our business growth, opex and provisioning estimates. We maintain “Accumulate”. IIB reported13% QoQ rise in GNPL led by 55% QoQ growth in slippages in corporate portfolio.IIB also sold loans worth Rs530m to ARC and now has total outstanding SR book of Rs 2.6bn (0.3% of advances). Provisions stood higher than estimated and enabled IIB to maintain stable coverage ratio at 60% while restructured p/f declined to 0.58%. We revise our PT to Rs 1,050 based on Sep‐2017E ABV (from Rs 1,070) and maintain “Accumulate”.For all recommendations, 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.

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