Shares of IndusInd Bank rose over 3 per cent in early trade today after the lender reported a 190.2 percent year-on-year (YoY) jump in its standalone net profit for the quarter ended March 2021. The bank reported a net profit of Rs 875.95 crore compared to Rs 301.8 crore in the same quarter a year ago. The increase in net profit was attributed to decline in bad loan provisions.
The large cap stock hit an intraday high of Rs 967.80 on the BSE. The stock has risen 41 per cent in the last six months and 95 per cent over the last 12 months.
Later, the share fell 3.74% intra day to Rs 900 amid profitbooking and a decline in benchmark indices. It ended 2.24% lower at Rs 914 on the BSE.
Net Interest Income (NII) rose 9.4 per cent to Rs 3,535 crore in the March quarter compared to Rs 3,232 crore in Q4FY20. Gross non-performing assets (NPA) rose to 2.67 per cent in Q4FY21, as against 1.74 per cent as of 31st December 2020. Net NPAs stood at 0.69 per cent from 0.22 per cent, up 47 basis points sequentially.
"With the rise in COVID-19 cases and a recent lockdown in a few Indian states, we remain watchful as MFI and CV are the most impacted segments. We cut our FY22E/FY23E earnings estimates by 15%/6% as we factor in a higher (2.5%) credit cost in FY22E," said Motilal Oswal Securities.
"We believe the bank has an adequate capital buffer to retain double-digit growth in FY22 and FY23. Furthermore, the liquidity surplus of Rs 400 billion is likely to safeguard the balance sheet," said LKP Securities.
"We expect the credit cost to normalize in FY22E and return ratios to reach the previous run rate. The Core operating performance of Indusind Bank remains healthy. A higher PCR is likely to safeguard the bank from credit disruption from COVID," it added.