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Informist, Monday, Jul. 20, 2026

 

By Diksha Tripathy

 

MUMBAI – IndusInd Bank is expected to report a marginal growth in net profit for the June quarter as a year-on-year decline in advances of the bank was offset by a fall in provisions, brokerages tracking the private-sector lender said.

 

The private-sector lender is estimated to post a net profit of INR 6.90 billion for the June quarter, up nearly 1% on year, according to an average of estimates from 12 brokerages. The highest estimate for net profit is INR 9.65 billion from PhillipCapital (India) Pvt. Ltd. and the lowest INR 5.08 billion from Prabhudas Lilladher Pvt. Ltd. For the March quarter, the bank had reported a net profit of INR 5.33 billion.

 

Brokerages attributed the expectation of a marginal growth in net profit to the decline in advances for the first quarter. Net advances of IndusInd Bank were down over 2% on year to INR 3.26 trillion as of Jun. 30, the provisional data released by the bank showed. Sequentially, the net advances are seen rising 1.2-3.3%, as per estimates by brokerages. Contrary to the fall in advances, deposits of IndusInd Bank rose 4.5% on year to INR 4.15 trillion as of Jun. 30, the provisional data showed. For the March quarter, IndusInd Bank's net advances fell nearly 9% on year to INR 3.15 trillion as of Mar. 31, and deposits declined nearly 3% to INR 4 trillion.

 

Net interest income of the bank is expected to decline over 4% on year but rise nearly 2% sequentially to INR 44.37 billion for the June quarter. The highest estimate for net interest income is INR 45.30 billion from JM Financial Institutional Securities Pvt. Ltd. and the lowest is INR 43.90 billion from Prabhudas Lilladher Pvt. Ltd. For the March quarter, the bank had posted a net interest income of INR 43.71 billion, up 43% on year.

 

For the June quarter, most brokerages expect the bank's overall net interest margin to remain stable, while a few others expecting it to recover on the back of lower funding costs. However, Nomura Financial Advisory and Securities (India) Pvt. Ltd. expects the net interest margin to decline by 3 basis points. IndusInd Bank's net interest margin during the March quarter eased slightly to 3.39% compared with 3.52% for Oct-Dec, but was sharply higher than 2.25% in the year ago quarter.

 

In terms of asset quality, the slippages are expected to go down, however, YES Securities expects it to be higher on a sequential basis. Most brokerages expect provisions of the bank to decrease on a sequential basis for the reporting quarter, while Kotak Securities expects it to remain higher as the bank is looking to reduce net non-performing loans ratio. For the March quarter, the bank's provisions fell sharply, boosting the bottom line. Provisions fell 39% on year and 29% on quarter to INR 14.84 billion in the trailing quarter.

 

Sequentially, fee income is expected to improve with increase in disbursements, brokerages said. The fee income is expected to outpace loan growth, YES Securities said in a report.

 

Commentary on asset quality, margins, and growth outlook of the bank will be closely watched in the June quarter earnings of IndusInd Bank, brokerages said.

 

The private-sector lender's commentary on foreign currency non-resident (bank) deposits and external commercial borrowings will also be tracked by market participants. In June, the Reserve Bank of India opened a concessional swap window for banks to park funds raised from their three- to five-year FCNR (B) deposits at no hedging cost, with the scheme in effect till Sept. 30. Following the RBI's move, IndusInd Bank had raised its interest rates on FCNR (B) deposits for tenures ranging from three to five years by up to 315 basis points to 6.60-6.75%.

 

IndusInd Bank is scheduled to disclose its earnings for the June quarter Wednesday. Monday, shares of the bank closed 0.6% higher at INR 1,032.85 apiece on the National Stock Exchange. The stock has risen over 14% since its March quarter earnings were announced on Apr. 24 post-market hours. 

 

Of the 15 brokerage reports on the bank available with Informist, six have a "buy" recommendation on the stock with an average target price of INR 962 per share. Eight brokerages have a "hold" recommendation with an average target price of INR 919 per share, while one has a "sell" recommendation on the stock.  

 

Following are the Apr-Jun earnings estimates for IndusInd Bank from 12 brokerages in descending order by the net profit estimate in INR billion:

Brokerages	NII	Net Profit
PhillipCapital (India) Pvt. Ltd.	44.04	9.65
IDBI Capital Market Services Ltd.	44.43	9.27
Nuvama Wealth Management Ltd.	44.63	7.58
Nomura Financial Advisory and Securities (India) Pvt. Ltd.	44.40	7.20
JM Financial Institutional Securities Pvt. Ltd.	45.30	6.80
Motilal Oswal Financial Services Ltd.	44.39	6.71
Systematix Shares and Stocks (India) Ltd.	43.96	6.69
Nirmal Bang Equities Pvt. Ltd.	44.52	6.43
YES Securities (India) Ltd.	44.15	6.20
Kotak Securities Ltd.	44.60	5.72
Elara Securities (India) Pvt. Ltd.	44.13	5.50
Prabhudas Lilladher Pvt. Ltd.	43.90	5.08
Average	44.37	6.90

 

End

 

Edited by Akul Nishant Akhoury

 

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