NEW DELHI: Nifty50 constituent IndusInd Bank is all set to report a healthy set of quarterly results on Thursday. Brokerages expect the lender to post 26-29 per cent year-on-year (YoY) growth in net interest income, while net interest margins are expected to come in at 3.8-4 per cent.

Brokerage Kotak Securities expects the lender to report a 26.8 per cent YoY rise in net interest income at Rs 1,851.50 crore for the September quarter, compared with Rs 1,460 crore in the corresponding quarter last year.

While pre-provision profit is seen rising 24.6 per cent, adjusted profit is seen jump 26.3 per cent to YoY Rs 889.30 crore for the quarter.

"We expect loan growth at 24 per cent YoY, led by steady growth in retail business. Net interest margin (NIM) will remain stable QoQ supported by higher share of retail loans stress. We expect fee income growth to see a slowdown. The stress on asset-quality would be limited but we would watch for any lagged impact of the MFI exposure," the brokerage said.

Motilal Oswal Securities, which expects the bank to report a marginal drop in NIMs on QoQ basis points to 3.8 per cent, sees the lender's non-interest income growing by 25 per cent, supported by healthy fee income growth of 22 per cent.

A stronger contribution of third-party distribution fees owing to increased inflows into MFs and insurance industry should continue to support higher third-party distribution fees, it said.

"Opex growth would remain high at 24 per cent YoY compared with 26 per cent growth in total income. Healthy PPP growth and controlled credit costs would keep earnings growth strong at 27 per cent YoY," Motilal Oswal's note said.