This topic contains 10 replies, has 1 voice, and was last updated by Leena Mehta, Mumbai 1 month, 3 weeks ago.
October 13, 2016 at 8:43 pm #3449
1)IndusInd Bank’s (IIB) 1QFY17 PAT grew 26% YoY (in line with expectations) to
INR7b, led by strong core PPoP growth of 27% YoY and 9% QoQ. Asset quality
remained stable QoQ, with GNPA at 90bp and stable PCR of 59%.
2)NII growth (33% YoY, 8% QoQ) was driven by 27% YoY loan growth and uptick
in NIM to 4% (v/s 3.97% in 1QFY17 and 3.88% in 2QFY16). Core fee income
growth, which came in marginally below loan growth at 23% YoY, was broad-
based, with all segments barring FX income contributing to growth. Investment
banking fees remained strong at 15% of PBT.
3)Corporate/consumer loans exhibited robust 26/27% YoY growth, resulting in a
60:40 loan mix at the end of the quarter. However, adjusting for the gems and
jewelry and the microfinance portfolio, which are included in corporate loans,
the mix would be close to 50:50.
4)Deposit growth witnessed a sequential uptick to 39% from 31% in 1QFY17. This
was driven by strong CASA deposit growth. There were one-off items that
contributed to strong CA growth. As at the end of the quarter, CASA ratio stood
at 36.5% compared to 34.4% in 1QFY17.
5)Other highlights: (a) Restructured loans declined to 0.44% of loan book, as one
account slipped into NPA, and (b) CET1 was strong at 14.68% (-13bp QoQ).
6)Management expects to sustain 4% NIMs despite MCLR cuts, due to increasing
share of consumer finance portfolio as well as better cost of funds on account of
lower bulk borrowings.
7)Management is bullish on the CV cycle from a 2-3 year perspective. Currently,
yields in the CV segment range from 10% to 11.5%. Historically, the LGD has
been in the range of 30-35%.
8)MFI AUM stands at around INR30b. Management continues to be bullish on
prospects in the microfinance segment.
9)The bank has 292 branches in ‘Home Markets’, i.e., markets where it wants to
be a top player with at least 4-5% share in CASA deposits.
10)Average ticket size in the mid-corporate segment is INR150-200m
The bank is on track to reach their goal of 1200 branches by end-FY17.
Currently, around 320 branches are less than years old. These branches are yet to operate at optimisation level.
Overall superior margins, focused fee income strategy and control over C/I ratio
will keep earnings momentum healthy (~26% CAGR over FY16-19). Capitalization
remains one of the best in the industry at 14.7% CET1 ratio. I believe that I should invest in this scrip since I consider its
target price of INR 1,400 .
I request forum members to offer their comments on this scrip.
October 13, 2016 at 8:47 pm #3450
I saw Q 2 results of Indus Ind Bank and I also felt that the scrip has strong potential to move upward in coming months. The bank is related to Ashok Leyland group/Hinduja group and because of increase in commercial vehicle sales, this bank will be most benefited.
The scrip has given strong returns during last 6 months. and can give such returns in coming months.
October 13, 2016 at 8:49 pm #3451
Rahil Shah, Ahmedabad
This bank has showed strong Q 2 results and due to high fancy towards banking stocks, it can move up marginally but I think ICICI bank can provide higher returns on CMP.
October 14, 2016 at 6:38 pm #3468
Mehul Patel, Ankleshwar
I agree with the analysis.the bank has focus on Auto loans and more particularly loan for commercial vehicles. so now auto loans are expected to increase at tremendous speed.
The government will also push for scappiing of old trucks and buses so sale and loan will increase.
I believe that this scrip can give atleast 15% rise in coming months.
November 26, 2016 at 4:33 pm #3851
Vijay Sheth, New Delhi
you have suggested IndusInd Bank scrip on 13th October but thereafter due to demonetisation, the scrip is attractively available at Rs. 1073 . As regards , fundaments, the bank has excellent fundamentals and now technically also, the scrip has bottomed out and can be accumulated.
November 26, 2016 at 4:36 pm #3852
Rupa Shah Mumbai
This is one of the excellent platform for stock market discussion. Up till now I had so many queries regarding my holding and now I can get answers /guidance from this forum and this scrip related format is excellent , It is really a Nukkad,, though the name has been changed !
I have bought 100 shares of IndusInd Bank at some what higher price but I believe that even at this down trend, it is value for money.
November 26, 2016 at 4:39 pm #3853
Maulina Patel, Mumbai
What you have said is correct. Since last 5 years, I am active in stock market, through Kotak Platform. But at times I have queries regarding my holdings and on this platform, I get adequate solution and this discussion forum I believe will go long way.
One get opportunity to know what other investors believe about these scrips.
In the newspapers, we get only opinions of Experts but here a layman like us can express our views and fears.
November 28, 2016 at 12:36 pm #3858
anubhav Joshi, Bhavnagar
This bank has given huge loans to Jewelary sector and also to microfinance out of total corporate lending. So these two sectors will have some problems on remonetisation and bring in more NPAs. So better wait and watch for one more quarter. and if nothing bad happens then enter this scrip.
November 28, 2016 at 12:39 pm #3859
In stead of InduInd Bank, I would prefer to buy Axis Bank or ICICI Bank which have much larger incomes and profits and branch network. Axis now at Rs. 476 ( compared to 52W high price of Rs. 638) is better placed. ( Ignore its Q 2 results and calculate longer period perspective)
November 28, 2016 at 12:42 pm #3860
Anuj Dua, New Delhi
Yes compared to IndusInd Bank I would go for Axis and ICICI Bank because of wider Income and profit base. Yet HDFC Bank with lowest NPA level is my first choice. And remember that most of the mutual fund managers have put faith in HDFC Bank.
November 28, 2016 at 12:47 pm #3861
Leena Mehta, Mumbai
first of all let me congratulate Chanakya promoters for providing excellent platform for secondary market discussion.
As regards Indusind bank, I believe that it is nodoubt good bank with strong fundamentals, yet one must remember that it is midcap scrip and not a large cap scrip.So better go for HDFC Bank or Axis Bank which can go up at higher rate.