InvestorQ : The latest results of IndusInd Bank seem to be showing good growth. Can I look to accumulate the stock at current prices?
swati Bakhda made post

The latest results of IndusInd Bank seem to be showing good growth. Can I look to accumulate the stock at current prices?

Answer
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Dia Deshpande answered.
1 year ago


The bank has reported good numbers in terms of growth in revenues and profits. The total revenues for the June quarter are up by 35% at Rs.8624 crore while the net profits were up by 38% in the June quarter at Rs.1433 crore. However, the June quarter has also seen Gross NPAs rise sharply from 1.15% to 2.15%. The provisioning for bad debts was also higher at Rs.431 crore as the bank took further hits on its exposure to IL&FS. In the last quarter, the bank had classified Rs.3004 crore of its IL&FS exposure and had also made a 40% provision against the exposure.

Credit growth and deposit growth for the quarter were up by 27% even as Net Interest Income showed a robust growth. NIM stood at a healthy level of 4.05%. The June quarter also includes the impact of the merger with Bharat Financial, one of India’s oldest micro finance company. While the risks have come down sharply, you can look to gradually accumulate the stock at lower levels. Keep a longer term perspective on the stock of at least 2-3 years for most of its initiatives to fructify.