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Private sector lender, IndusInd Bank is set to announce its financial performance for the last quarter of FY22, on Friday. Investors were upbeat about the bank ahead of its Q4 earnings on stock exchanges.
IndusInd shares finished at ₹987.45 apiece higher by ₹12.95 or 1.33% on BSE today. At the closing price, the IndusInd market cap stood nearly ₹76,500 crore.
The board of directors of the Bank will consider the dividend for the financial year FY22, on April 29.
What to expect in Q4?
Kajal Gandhi, Vishal Narnolia, and Sameer Sawant Research Analysts at ICICI Securities in their note said, "IndusInd Bank reported healthy growth in advances (13% YoY) and deposits (15% YoY) at ₹239307 crore and ₹293685 crore respectively, while CASA ratio was largely stable at 42.8% during Q4FY22."
The trio added, " NII to grow at 9.7% YoY to ₹3878 crore, while non-interest income may grow 14% YoY at ₹2032 crore. Cost-to-income may improve marginally to 42.5%."
"Subsequently, PAT may grow 54.5% YoY at ₹1353 crore. Overall asset quality trend is expected to improve sequentially to 2.3% levels," the analysts in their note further said.
Management commentary on growth outlook would be key to be watched.
It needs to be noted that, IndusInd Bank has already announced its provisional performance of the balance sheet as of March 31, 2022.
Data given on BSE, IndusInd stated to report net advances of ₹2,39,307 crore up by 13% yoy and 5% qoq. Deposits surged by 15% yoy and 3% qoq to ₹2,93,685 crore. CASA ratio stood at 42.8% in Q4FY22 versus 42.2% in Q3FY22 and 41.8% in Q4FY21.
9MFY22:
IndusInd Bank posted a net profit of ₹3,404 crore in 9MFY22 rising by 70% from ₹2,004 crore in the same period last year. Net Interest Income for the nine months ended December 31, 2021 increased to ₹11,016 crore as compared to ₹9,993 crore for the corresponding previous nine months, which grew by 10% YoY.
The bank's loan book quality was stable.
Gross Non-Performing Assets were at 2.48% of gross advances as of December 31, 2021, as against 2.77% as of September 30, 2021. Net Non-Performing Assets were 0.71% of net advances as of December 31, 2021, as compared to 0.80% on September 30, 2021.
The Provision Coverage Ratio was consistent at 72% as of December 31, 2021.