Please refer to important disclosures at the end of this report
IndusInd Bank (IIB) is one of the ten new private sector banks which were
awarded the license in 1994. The bank has a pan-India presence. IIB has
transformed itself from being principally a commercial vehicle lender and having
moderate corporate portfolio. Now IIB has an approx `140,000cr balance sheet
and has 51:49 corporate advance to consumer advance ratio. In Consume
advance bank is aiming to bring vehicle and non-vehicle ratio to 50:50 from
current 70:30. IIB reported stellar number for Q1FY17; Net interest income (NII),
increased 38.32% to `1,356.4cr from `980.66cr last year. The deposit as well
advances grew 30% from the same period last year. NIM (3.97%) remained
strong owing to reduced borrowing cost and a higher portion of the bank’s loan
book being in the fixed rate system. Gross NPAs were steady and stood at
0.91%and Net NPAs made up 0.38% of the loan book in Q1FY17. Mr. Sobti
(MD & CEO) ace banker has transformed IIB from average performer to top
notched bank, which is clearly visible in operational parameter of IIB. The bank is
consistently reporting RoE of 15%+ also paying dividend, outpacing industr
growth parameter on total business and maintain higher NIM and CAS
(34.4%). Clarity on earnings front, low NPA and high capital adequacy will help
sustain business growth trajectory. Hence Buy.
CMP `1,220
Stock Info
Beta 0.9
Bloomberg Code IIB IN
Shareholding Pattern (%)
Promoters 16.7
MF / Banks / Indian Fls 13.3
FII / NRIs / OCBs 48.8
Indian Public / Others 21.3
Abs. (%) 3m 1yr 3yr
Sensex 6.3 8.1 53.2
IndusInd Bank 9.3 46.6 242.8
Market Cap (` cr) 72,779
52 Week High / Low 1255/799
Avg. Daily Volume 93,046
Face Value (`)10
BSE Sensex 29,045
Nifty 8,953
Reuters Code INBK.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
IndusInd Bank
Others | Banking
September 9, 2016
IndusInd Bank | Banking
September 9, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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