Brokerage houses expect single digit to negative growth in profitability for the quarter.
Share price of IndusInd Bank was down nearly 1 percent in the early trade on Wednesday as company is going to announce muted numbers for the December quarter.
The bank will announce its third-quarter earnings on January 9. Brokerage houses expect single digit to negative growth in profitability for the quarter.
Private sector lender IndusInd Bank is expected to report muted growth in Q3 profit as provisions may remain elevated due to exposure to IL&FS that defaulted on interest payments to bondholders. However, the growth in net interest income, loan, other income and operating profit could be strong.
The bank will announce its third-quarter earnings on January 9. Brokerage houses expect single digit to negative growth in profitability for the quarter.
"IIB's earnings could be under pressure as it does higher provisions on IL&FS similar to last quarter but we are likely to not see any recognition of IL&FS in NPA. Hence we expect asset quality to be maintained," said Prabhudas Lilladher which expects 6.5 percent on year growth in Q3 profit.
Also Read - IndusInd Bank Q3: Brokerages say profit may take a hit on IL&FS exposure
Motilal Oswal expects 1 percent growth in profit but Elara Capital sees a massive 37 percent fall in profit.
Motilal Oswal, which has a buy call on the stock with a price target at Rs 2,000, expects strong loan growth of around 35 percent YoY in Q3FY19, significantly ahead of system loan growth.
Reliance Securities expects net interest income growth of 41 percent and PPOP 44 percent YoY in Q3. "Slippages and credit costs could increase marginally."
At 09:17 hrs IndusInd Bank was quoting at Rs 1,573.15, down Rs 4.45, or 0.28 percent on the BSE.
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