Sharekhan feels operating parameters may remain under pressure, due to deposits decline and impact on rural/MFI segments.
IndusInd Bank share price gained 6 percent in early trade on April 27 ahead of its March quarter numbers.
The company will report its January-March quarterly earnings today. The private lender is expected to register an 80 percent year-on-year fall in Q4 FY20 profit due to pressure on its operating earnings and higher provisions.
According to brokerages, pre-provision operating profit growth could be in single-digit YoY.
Also Read - IndusInd Bank Q4 preview: Profit may fall sharply on muted operating performance
However, net interest income may see around 30 percent growth YoY, which is incomparable due to Bharat Financial Inclusion merger. Meanwhile, loan growth could slow down to around 15-20 percent YoY and higher cost of funds may dent net interest margin for the quarter.
"We expect a weak performance on operating metrics. Loan growth at around 20 percent YoY (includes Bharat Financial acquisition) while NIM will likely decline due to higher cost of funds (weak funding environment). We expect weaker performance on fee income growth," said Kotak Institutional Equities which sees profit declining 87.6 percent YoY and net interest income rising 30 percent YoY.
Sharekhan also feels operating parameters may remain under pressure, due to deposits decline and impact on rural/MFI segments.
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