IndusInd Bank is slated to announce its financial results for the quarter ended June 30, 2018, on Tuesday. The private sector lender is likely to report a double-digit rise in net profit as well as net interest income.
According to Nirmal Bang Securities, IndusInd Bank may report 29.10 per cent year-on-year (YoY) rise in net profit at Rs 1,080 crore. The brokerage house also projected 17.20 per cent YoY jump in net interest income at Rs 2079.20 crore. Pre-provision profit is expected to increase by 20.60 per cent YoY to Rs 1916.10 crore.
An assessment by Kotak Institutional Equities projected 19.1 per cent year-on-year rise in adjusted PAT. Pre-provision profit may jump by 11.70 per cent YoY, the brokerage added. Net interest income and EPS of the lender may increase by 16.80 per cent YoY and 18.80 per cent YoY, respectively.
The brokerage house expects limited asset-quality stress and gross non-performing loans (GNPL) of 1.3 per cent, up around 10 basis points QoQ. Coverage ratio will be similar to the previous quarter at around 60 per cent levels.
“We expect strong loan growth at around 25 per cent YoY led by solid growth in retail business (led by all business products). Revenue growth would be slower as pressure on net interest margin (NIM) would be quite high. We expect NIM to decline 10 bps QoQ,” Kotak said in a report.
Shares of the lender were trading almost flat at Rs 1954.95 in the early trade.