Seven Directors at Indusind Bank Limited sold/sold after exercising options 30,125 shares at between 1,480.000INR and 1,525.250INR. The significance rating of the trade was 69/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary tra...
INDUSIND BANK: RoA expansion on track; asset quality improves further (IIB IN, Mkt Cap USD11.4b, CMP INR1218, TP INR1450, 19% Upside, Buy) IndusInd Bank (IIB) reported a PAT of INR18.1b (+57% YoY; in line) with steady operating performance across all key metrics during the quarter. Loan growth remained steady at 18% YoY with traction in Corporate as well as Consumer Finance book. Sequential growth of 6.4% in corporate was driven by working capital loans. Within consumer, growth was broad ba...
We attended IIB’s analyst day where the management highlighted how the bank is focused on delivering sustainable growth in its key domain businesses and building a strong and granular franchise. The bank is further investing in building digital capabilities and new growth engines with a focus on delivering strong risk-adjusted returns. Alongside, it also unveiled the Planning Cycle 6 (PC-6) with a focus on expanding the key domain business, improving the liability franchise, scaling up new initi...
The general evaluation of INDUSIND BANK (IN), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date February 4, 2022, the closing price w...
INDUSIND BANK: Liability franchise strengthening; loan growth gains traction (IIB IN, Mkt Cap USD12.6b, CMP INR1212, TP INR1400, 15% Upside, Buy) IIB's consistent efforts in strengthening its liability franchise have been yielding results. After witnessing a sharp run down in deposits over Mar'20, the management has increased its focus on garnering Retail deposits. The same has grown by 59% YoY in Sep'21, while the mix as per LCR disclosures rose 980bp YoY to 41%. Loan growth over the pa...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
(IIB IN, Mkt Cap USD14.5b, CMP INR1481, TP INR1720, 16% Upside, Buy) PPoP in-line; credit cost to stay elevated** IIB’s third-quarter result mirrored overall slowdown in the economic environment, which continues exerting pressure on asset quality. While the operating performance was healthy (NII, margins, business growth, particularly deposits/PPoP), higher slippages remain a drag and also a reason for investor caution in a period of management transition. ** We cut our EPS estimate for FY20/21...
Q2FY20 result highlights IIB’s consolidated PAT of Rs13.9bn declined 3% qoq (like to like) and grew 50% yoy (consolidated over standalone). Higher loan loss provisions were offset by lower taxation. Loan growth slowed down both standalone and consolidated. Consolidated loans grew 21% yoy while standalone loan growth slowed to 14% yoy (28% in 1Q20). Management explained that repayments were higher in 2Q adjusted for which standalone loan growth was in high teens against the unadjusted 14%. G...
Q1FY20 result highlights IIB’s consolidated PAT of Rs14bn grew 38% yoy and 298% qoq and was higher than the consensus estimate of 12.8bn. Standalone PAT of Rs12bn grew 18% yoy and 239% qoq, driven by a sharp decline in provisions. Standalone PPOP growth at 17% yoy was similar to 4Q and below the long term average of 21% due to lower NII. Slower NII growth was partly offset by higher trading gains while fee growth was in line at 22% yoy. Credit cost fell sharply qoq as 4Q19 contained lumpy IL&...
Q1FY20 result highlights IIB’s consolidated PAT of Rs14bn grew 38% yoy and 298% qoq and was higher than the consensus estimate of 12.8bn. Standalone PAT of Rs12bn grew 18% yoy and 239% qoq, driven by a sharp decline in provisions. Standalone PPOP growth at 17% yoy was similar to 4Q and below the long term average of 21% due to lower NII. Slower NII growth was partly offset by higher trading gains while fee growth was in line at 22% yoy. Credit cost fell sharply qoq as 4Q19 contained lumpy IL&...
IndusInd Bank: Stepping toward ‘Business As Usual’ amid persisting concerns (IIB IN, Mkt Cap USD13.3b, CMP INR1510, TP INR1830, 21% Upside, Buy) IIB reported merged PAT of INR14.3b (standalone: INR12.2b) for 1QFY20, largely led by lower provisions of INR4.3b (our estimate: INR8.1b). NII stood at INR28.4b (~3% miss; standalone: +14% YoY to INR24.2b), while the NIM improved to 4.05% from ~3.6% in 4QFY19. Total income improved to INR45.1b (in-line), led by healthy other income growth of 28...
Q4FY19 result highlights IIB’s PAT of Rs9.9bn declined 310% qoq and 68% yoy and was substantially lower than our estimate of Rs6.8bn. While the bank was expected to make higher provisions for IL&FS, the interest reversal on IL&FS was much higher than expected and lead to an earnings miss. The entire IL&FS exposure has been classified as non-performing in 4Q. Total exposure to IL&FS is Rs30bn of which Rs20bn is to the holdco. The bank has provided 70% on the holdco and 25% on SPVs though it e...
IndusInd Bank: Concerns abating; marching toward ‘business as usual’ (IIB IN, Mkt Cap USD13.1b, CMP INR1518, TP INR1900, 25% Upside, Buy) IIB reported PAT of INR3.6b (our estimate: INR5.3b) in 4QFY19, affected by higher provisions of INR15.6b (INR11.2b toward IL&FS). NII growth moderated to 11% YoY led by interest reversal of INR1.5b, while the NIM shrank to 3.59% (3.84% without interest reversals). For FY19, NII/PPoP grew 18%/22%, while PAT declined 8.5% YoY to INR33b. Total income incr...
Q3FY19 result highlights PAT of Rs9.85bn grew 5% yoy and 7% qoq and was in line with our expectations. IIB’s operating performance was in line and strong with strong loan growth, stable margins and stronger than expected fee income (street was expecting decline in core fees while the bank has reported a sequential increase of 4%). PPOP grew 27% yoy and 6% qoq while core PPOP grew 23% yoy and 1% qoq The bank made provisions of Rs2.55 bn towards their IL&FS hold co exposure of Rs21bn. As of no...
IndusInd Bank: IL&FS exposure an overhang; Negligible divergence provides comfort (IIB IN, Mkt Cap USD13.7b, CMP INR1601, TP INR1900, 19% Upside, Buy) IndusInd Bank’s (IIB) PAT grew by a muted 5% YoY to INR9.8b in 3QFY19 due to contingent provision of INR2.55b (toward infra group). NII grew 21% YoY, while NIM was largely flat at 3.83% on account of a rise in cost of funds. Total income increased 22% YoY on the back of healthy other income growth of 24% YoY. Core fees grew 18% YoY, led by...
Q2FY19 result highlights PAT of Rs9.2bn was substantially lower than the consensus estimate of Rs10.98bn due to a provision of Rs2.8bn on IL&FS. Growth in PAT was the lowest in many quarters at 5% yoy (decline of 11% qoq). Excluding this provision, PAT growth would have been in line. Operating profit was broadly in line. Stronger than expected loan growth and lower than expected opex were the key positives which were offset by substantially lower trading gains and lower NIMs. Core PPOP grew ...
INDUSIND BANK: Operationally on track; asset quality overhang remains (IIB IN, Mkt Cap USD13.3b, CMP INR1627, TP INR2100, 29% Upside, Buy) IIB’s PAT grew by a muted 5% YoY to INR9.2b in 2QFY19 due to contingent provision of INR2.8b (toward infra group). NII rose 21% YoY, while the NIM moderated 16bp YoY on account of higher funding cost. Total income grew by just 17% YoY due to muted income growth (+11% YoY) on account of weak treasury gains. Core fee increased 20% YoY, led by distribut...
Q1FY19 result highlights PAT of Rs10.4bn grew 24% yoy and 9% qoq. Growth in unadjusted PAT and PPOP looks slower than in the prior quarters due to high treasury income last year in 1Q18. While low treasury in 1Q19 was partly offset by higher forex income, it was not enough to compensate. Adjusted for treasury and forex, growth in core PPOP was higher at 29% yoy in 1Q19 versus unadjusted growth of 20% and growth in PBT was higher at 44% (vs unadjusted growth of 22%) Strong loan growth, pick u...
IndusInd Bank: Controlled opex supports operating performance; asset quality stable (iib IN, Mkt Cap USD17.4b, CMP INR1935, TP INR2250, 16% Upside, Buy) IndusInd Bank's (IIB) 1QFY19 PAT grew 24% YoY to INR10.4b (marginally below our estimate). NII rose 20% YoY, while the NIM moderated 5bp QoQ, driven by an increase in funding cost (+22bp QoQ). Total income grew 16% YoY due to muted other income (+12% YoY) on account of low treasury gains (INR1.37b v/s INR1.93b in 1QFY18). Core fee income...
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