IndusInd Bank Q3 Results Preview: Private lender’s profit may surge up to 40% – check stock target price here

Banking heavyweight IndusInd Bank is likely to report strong third-quarter numbers for the financial year 2021-22 (Q3FY22) on Saturday. Among all metrics, the profit of private lender to grow up to 40 per cent, while asset quality to remain stable, most analysts expect in their earnings preview. 

According to Motilal Oswal, the net profit of IndusInd Bank to come at Rs 1160 crore, up 39.5 per cent YoY, while net interest income at Rs 3810 crore, up 11.8 per cent year-on-year. While the gross (non-performing assets) come at 2.9 per cent and net NPA at 0.8 per cent, stable sequentially. 

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“Loan/Deposit growth to see healthy pickup quarter-on-quarter and asset quality to remain under watch, led by higher strain on MFI business; restructuring book to be key, the brokerage said. 

It further added, “Margins to remain stable at around 4.1 per ent. Credit costs to stay elevated as the focus remains on maintaining higher PCR.” 

Similarly, another brokerage firm ShareKhan expects the profit to come at Rs 1231 crore, up 22.3 per cent YoY and NII at Rs 3635 crore, up 6.7 per cent YoY in the October-December quarter of FY22.  

 “We believe that with the improvement in the collection efficiency across banks to the normalised levels in Q3FY22, the asset quality may trend lower. Slippages for the banks are also expected to be lower during the quarter,” the domestic brokerage firm said in its Q3 results preview. 

Both the brokerages being bullish on the IndusInd Bank shares, expect massive upside in the stocks. Motilal sets a price target of Rs 1400 per share with an up move of 55 per cent and ShareKhan sees potential of over 48 per cent growth with a target of Rs 1340 per share. 

Ahead of its results, the stock on Friday jumped almost 2 per cent to Rs 903.55 per share on the BSE as compared to 0.13 per cent fall in the S&P BSE Sensex. 

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)