Indusind Bank Q1FY12 Result Update
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Transcript of Indusind Bank Q1FY12 Result Update
8/6/2019 Indusind Bank Q1FY12 Result Update
http://slidepdf.com/reader/full/indusind-bank-q1fy12-result-update 1/3
Wealth Research, Unicon Financial Intermediaries. Pvt Ltd.
Email: [email protected]
ONG TERM INVESTMENT CALL
Accumulate9 July 2011
Company Report | Q1FY12 Result Update
Q1FY12 Result Highlights
Indusind Bank (IIB) net profit grew by 52% YoY to INR 1802 Mnmainly driven by robust core fee income growth of 44% YoY. The
proportion of core fee income increased due to increase in its third
party products, trade and remittances, foreign exchange and
Investment banking income. IIB’s net interest income has grown by
32% to INR 3900 Mn as compared to INR 2957 Mn in Q1FY11 & other
income increased by 34% YoY to INR 2154 Mn.
Advances grew 31.3% YoY to INR 283.8 Bn & deposits grew by 28.7%
to INR 352.6 Bn. This was stronger than the industry’s growth rate of
~20% & ~17% respectively. Improvement in deposit mix along with
branch expansion (326 from 224 branches) led to higher CASA ratio of
28.2% in Q1FY12 (24.3% in Q1FY11). Reported NIM improved 9 bps
YoY to 3.41%, however, on sequential basis it declined 9 bps due to
sharp rise in the cost of deposits (68 bps QoQ) while yield on
advances increased by 68 bps.
IIB continued to improve its asset quality and has brought down the
net NPA level to 0.3% in Q1FY12 from 0.38% in Q1FY11. Gross NPA
ratio fell to 1.08% in Q1FY12 from 1.26% in Q1FY11, but it increasedsequentially by 7 bps and 2 bps. The NPA coverage ratio rose 288 bps
YoY to 72.9%. Also the IIB maintained a healthy capital adequacy
ratio (CAR) of 14.99% in Q1FY12 as against 13.71% in Q1FY11. The
strong traction in CAR is likely to sustain IIB’s growth momentum in
coming quarters.
Outlook & Valuation
Going forward IIB in next 3 years is planning to keep NIMs above
3.5% along with healthy bottom-line, this would be possible through
1. scaling up CASA ratio to 35% with 200 bps to 300 bps improvement
every year. 2. Bank plans to take the branch network to 550 by Mar
’13. 3. Bank is expected to expand its product suite and services to
achieve higher business growth. At the CMP, stock trades at 3x FY12E
BV, we have Accumulate rating on the stock with target price of INR
320.
Industry Banking
CMP (INR) 287Target (INR) 320
52 week High/Low (INR) 292/200
Market Cap (INR BN) 133571
3M Avg. Daily Volumes 665280
P/BV FY12E 3x
Shareholding Pattern (%)
Promoters
20%
Institutions
42%
Others
14%Non-
institutions
24%
Stock Performance
150
200
250
300
350
400
J u l
S e p
N o v
J a n
M a r
M a y
J u l
IIB NSE Nifty
Performance (%)
1 Month 3 Months 1 Year
IIB 9.4% 5.7% 31.4%
NIFTY 2.5% -2.2% 5.8%* Source: Ace, Unicon Research
(INR in mn)
Particulars Actual Estimates
NII 3900 4137
Operating Profit 3117 3282
PAT 1802 1853* Source: Company, Unicon Research
AnalystShweta Rane | [email protected]
8/6/2019 Indusind Bank Q1FY12 Result Update
http://slidepdf.com/reader/full/indusind-bank-q1fy12-result-update 2/3
Wealth Research, Unicon Financial Intermediaries. Pvt Ltd.
Email: [email protected]
Financials(INR in mn)
Q1 FY12 Q1 FY11 Y-o-Y Q4 FY11 Q-o-Q
Interest income 11646 7715 50.94 10488 11.04
Interest expense 7746 4759 62.77 6608 17.22
Net Interest Income 3900 2957 31.90 3881 0.50
Other Income 2154 1610 33.82 1816 18.59
Total Operating income 6054 4566 32.58 5697 6.27
Operating expenditure 2937 2260 29.93 2717 8.10
Operating Profit 3117 2306 35.17 2980 4.59
Operating Profit (%) 26.77 29.89 -312 bps 28.42 -164 bps
Provisions 446 487 -8.51 403 10.78
PBT 2671 1819 46.87 2578 3.61Tax 870 633 37.32 860 1.08
PAT 1802 1186 51.97 1718 4.88
EPS (INR.) 4662 4111 13.40 4660 0.04
NIMs 3.41 3.32 9 bps 3.5 -8 bpsSource: Company, Unicon Research *Standalone
8/6/2019 Indusind Bank Q1FY12 Result Update
http://slidepdf.com/reader/full/indusind-bank-q1fy12-result-update 3/3
Wealth Research, Unicon Financial Intermediaries. Pvt Ltd.
Email: [email protected]
Unicon Investment Ranking Methodology
Rating Buy Accumulate Hold Reduce Sell
Return Range >= 20% 10% to 20% -10% to 10% -10% to -20% <= -20%
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