IndusInd Bank Q1 Review – Healthy Recoveries; Asset Quality Risks Remain: Dolat Capital

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IndusInd Bank Ltd.’s operating metrics were in-line, with net interest income and pre-provision operating profit growing by 8%/11% y-o-y respectively.

Net interest margin decline q-o-q to 4.1% and was adversely impacted by higher liquidity during the quarter, interest reversals, and limited decline in cost of fund.

High treasury gains partly supported operating profits (3.5%), with core PPoP/assets lower at 2.8%.

On asset quality, while slippages were elevated at 5.2%, increase in gross non performing asset was limited to 20 basis points as upgrades/recoveries were strong.

At 5.2% of advances, slippages were in line with expectations, 62% of which came from vehicle and micro finance institution portfolio.

However, IndusInd Bank also had good recoveries from MFI, resulting in net slippages of 3.6% from the segment.

Click on the attachment to read the full report:

Dolat Capital IndusInd Bank Q1FY22 Result Update.pdf


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