IndusInd Bank Ltd - Rise in NPAs clouds strong operating performance - Emkay

Reco: ACCUMULATE
CMP: Rs 406
Target Price: Rs 481

- Indusind Bank Q3FY14 NII at Rs7.3bn (+26.4% yoy); in line with your estimates. PAT at Rs3.5bn (+30% yoy) marginally ahead of your estimates due to higher other income

- Other Income stood at Rs4.8bn, higher than our estimates of Rs4.3 bn largely due to higher trading gains and forex income of Rs1.8bn as against our estimates of Rs1.2bn

- GNPA at Rs6.3bn / NNPA at Rs1.6bn grew 14.5%/ 51% qoq respectively; though slips a little but remain in line with our estimates. PCR has declined to 73.6%

- We are revising upwards our PAT estimates for FY14E by 3.7% due to better margin guidance. At CMP, stock quotes at 2.5x/2.2x of its FY14E/FY15E ABV. Maintain ACCUMULATE.

Source : Equity Bulls

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