8/3/2019 Indusind Bank Q2FY12 Result Update
1/3
Wealth Research, Unicon Financial Intermediaries. Pvt Ltd.
Email: [email protected]
NG TERM INVESTMENT CALL
Accumulate18 October 2011
Company Report | Q2FY12 Result Update
Q2FY12 Result Highlights
Indusind Bank (IIB) delivered another strong quarter growth.
Net
profit grew by 45% YoY to INR 1931 Mn mainly driven by
robust
interest on advances of 53% YoY. The fee income growth
exceeded
loan growth by 30% due to increase focus on (New) fee
enhancers.
IIBs net interest income has grown by 27% to INR 4192 Mn as
compared to INR 3297 Mn in Q2FY11 & other income increased
by
37% YoY to INR 2392 Mn. The core fee income grew by 30% to
INR
2118.7 Mn YoY. The main drivers has been forign exchange income
&
distribution fees which grew by 62% & 44% to INR 523 Mn
& INR
570.8 Mn YoY respectively.
Advances grew by 28% YoY to INR 301.3 Bn & deposits grew by
23%
to INR 383.6 Bn, this was stronger than the industrys growth
rate.
Improvement in deposit mix along with branch expansion (350
from
326 branches) led to higher CASA ratio of 27.7% in Q2FY12 (25.4%
in
Q2FY11).
Reported NIMs have fallen by 6 bps to 3.35% YoY, due to sharp
risein cost of deposits (8.16% in Q2FY12 vs. 5.99% in Q2FY11),
however,
this was partially offset by an increase in yield on advances
(13.81% in
Q2FY12 vs. 12.10% in Q2FY11).
IIB continue to maintain its asset quality as the Net NPA
were
contained at 0.31% in Q2FY12 vs. 0.30% in Q2FY11. Also, the
Gross
NPA was contained at 1.09% vs. 1.08% in Q2FY11. The NPA
coverage
ratio was at 72%.
Also, IIB maintained a healthy capital adequacy ratio (CAR) of
15.45%
in Q2FY12. The strong traction in CAR is likely to sustain IIBs
growth
momentum in coming quarters.
Outlook & Valuation
Indusind Bank is planning to increase its branch network
thereby
aiding growth in CASA ratio ~28-30%, which will help the
bank
increase its NIMs ~3.5% further in FY12. Bank is expected to
deliver
healthy bottomline growth in FY12 and also to expand its
product
suite and services. We have ACCUMULATE rating on the stock
withtarget price of INR 306.
Industry Banking
CMP (INR) 267Target (INR) 306
52 week High/Low (INR) 309/200
Market Cap (INR BN) 125930
3M Avg. Daily Volumes 6106800
P/BV FY12E 2.7X
Shareholding Pattern (%)
Promoters
20%
Institutions
42%
Others
14%Non-
institutions24%
Stock Performance
150
200
250
300
350
400
Oct
Dec
Feb
Apr
Jun
Aug
Oct
IIB NSE Nifty
Performance (%)
1 Month 3 Months 1 YearIIB 1.4% -2.9% 0.7%
NIFTY 0.7% -8.1% -15.6%* Source: Ace, Unicon Research
(INR in mn)
Particulars Actual Estimates
NII 4192 3941
Operating Profit 3330 3226
PAT 1931 1823* Source: Company, Unicon Research
Analyst
Shweta Rane | [email protected]
8/3/2019 Indusind Bank Q2FY12 Result Update
2/3
Wealth Research, Unicon Financial Intermediaries. Pvt Ltd.
Email: [email protected]
Financials(INR in mn)
Q2 FY12 Q2 FY11 Y-o-Y Q1 FY12 Q-o-Q
Interest income 13239 8541 55.00 11646 13.68Interest expense
9047 5244 72.53 7746 16.80Net Interest Income 4192 3297 27.13 3900
7.48Other Income 2392 1751 36.60 2154 11.05
Total Operating income 6584 5049 30.41 6054 8.75
Operating expenditure 3254 2430 33.92 2937 10.80Operating Profit
3330 2619 27.16 3117 6.82Operating Profit (%) 21.30 25.44 -413 bps
22.59 -128 bpsProvisions 470 567 -17.18 446 5.34
PBT 2860 2051 39.43 2671 7.07Tax 929 720 29.07 870 6.87
PAT 1931 1331 45.03 1802 7.17
EPS (INR.) 4.14 2.89 43.37 3.86 7.03NIMs 3.35 3.41 -6 bps 3.41
-6 bps
Source: Company, Unicon Research *Standalone
