IndusInd bank is a steady growth play coupled with an improving retail liability profile; best in class vehicle finance portfolio and a substantial pan India presence (through BHAFIN network) to tap into underpenetrated rural geographies.
NIM is expected to settle around 4.4% in FY20 as compared to 4.0% in FY19. Retail deposits improve to 28% from 23% in 3Q. Bank has demonstrated ample track record of running down stressed exposures.
With BHAFIN acquisition increasing IIB’s reach multi-fold & incremental addition of 300 branches over FY20, expect opex growth of 30% for FY20 (15% in FY19), resulting in CIR of 44%, flat over FY19.
While superior margins, retailization of deposits, comfort on consumer book asset quality, are positives, the bank has relatively higher slippage accretion in the corporate space and an impending management succession.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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