BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
Key highlight of IndusInd Bank Ltd.’s analyst meet was that focus is on strong asset growth that would be funded by retail term deposit while underwriting has been tightened so as to keep stress formation controlled.
IndusInd Bank’s branch expansion and investments in technology may keep opex elevated, though pre-provision operating profit to loan ratio may surpass 5.5% (over planning cycle-six) from 5.3% in FY22.
Expanding in home markets would be a key driver to business growth. IndusInd Bank is targeting a current account and savings account ratio of more than 45% while retail to wholesale loan mix could change from 52:48 to 60:40.
Better earnings quality is also a focus area. While asset growth may be achievable, material RTD growth might not be easy given tightened systemic liquidity. However, asset quality risks have abated and return on equity improvement from 10% to 15% over FY22-24E warrants a higher valuation.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Image and article originally from www.bqprime.com. Read the original article here.