IndusInd Bank - Q1 FY22 Result Report - YES Securities

(Rating: BUY, TP: Rs 1,201, Upside: 23%)

- Asset quality: Annualized slippage ratio for 1QFY22 was particularly elevated at 5.2% but provisions remained under relative control at Rs 18.4bn, down -1.2% QoQ

- Margin picture: NIM at 4.06% was down 7 bps QoQ, with the bank enhancing excess liquidity by Rs 120bn over the quarter

- Asset growth: Advances de-grew/grew -0.9%/6.4% QoQ/YoY driven by wholesale loans as consumer finance de-grew QoQ

- Opex control: Total opex de-grew/grew -1.7%/12.6% QoQ/YoY as other opex de-grew/grew -3.1%/13.5% QoQ/YoY and staff cost grew 2.2%/10.2% QoQ/YoY

- Fee income: Fee income declined -19.5% QoQ due to weakness in business activity

- We maintain 'Buy' rating on IIB with a revised price target of Rs 1201: We value the bank at 1.8x FY23 P/BV for an FY22E/23E/24E RoE profile of 11.8/14.0/14.6%.

Shares of INDUSIND BANK LTD. was last trading in BSE at Rs. 992.3 as compared to the previous close of Rs. 975.65. The total number of shares traded during the day was 568461 in over 8992 trades.

The stock hit an intraday high of Rs. 1008.8 and intraday low of 979. The net turnover during the day was Rs. 565603850.

Source : Equity Bulls

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