Indusind Bank -RBS book acquisition – EPS-accretive deal :: Nomura research

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IndusInd Bank: Trends unchanged :: Kotak Sec,report

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Trends unchanged. 3QFY15 marked a strong quarter with earnings growth of 29% yoy
led by healthy revenue growth and lower provisions. Loan growth of 22% yoy was led by
the corporate segment. IIB is well-placed compared to peers as (1) macro recovery, lower
crude prices and softening of interest rates should result in better retail loan growth and
upsides to NIM and (2) strong execution is leading to a diversified balance sheet, better
revenue mix and improvement in CASA. Maintain ADD; TP at `870 (from `830 earlier).

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Yet another healthy quarter; outlook bright…. • IndusInd Bank :: ICICI Securities, report

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IndusInd Bank - Stable Quarter; Result Update Q3FY15 :: Edelweiss

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Steady performance IndusInd Bank:: HDFC Sec

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IndusInd Bank - The Winning Troika; Visit Note :: Edelweiss

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Kotak reports on Reliance Ind, IndusInd, Godrej and Economy

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Buy IndusInd Bank: ICICI Securities

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IndusInd Bank 4Q13: Solid quarter, treasury drives surprise :: JPMorgan

IndusInd Bank reported Rs 3.35bn 1Q14 PAT, +42% y/y and 10%>JPMe.
The main surprise was driven by treasury and forex fees, despite an
Rs500m floating provision. Overall, operating numbers remain solid with
margins and asset quality holding up and strong savings momentum
continuing. We raise our PT to Rs550 on better LT growth outlook, and
maintain OW. We see IndusInd as a strong secular pick – the strong retail
asset franchise is now being supplemented by deposit momentum. Product
(and hence risk) diversification is helping raise ROAs and improve
earnings quality, all of which support the valuations of 3x FY14 PB.

Go short on IndusInd Bank futures ::: Business Line

IndusInd Bank, :: ShareKhan Diwali Muharat Picks 2012

IndusInd Bank is one of the fastest growing private sector banks with over +400 branches, 796 ATMs and
two international locations at London and Dubai. The bank was incorporated in April 1994 and Hinduja
group was the founding promoters. With a new management team led by Mr. Romesh Sobti from ABN
ARMO in 2008, the bank has turned around significantly in the last four years.
The bank has posted a top line growth of more than 25% and a profit growth of more than 30% during
the first half of the current financial year. On the operational front, its asset quality is one of the best
in the industry with its NPAs at 0.29% on September 2012. The bank’s capitalisation is above the RBI’s
levels; however, it is planning to raise capital through equity in the coming quarters to make it more
comfortable.
In absolute terms, gross non-performing assets (GNPAs) grew 12% quarter on quarter (QoQ) to Rs410
crore, while in percentage terms, GNPAs and net non-performing assets remained flat QoQ at 1% and
0.3%, one of the best in Industry. In absolute terms, the slippages were flat . On the valuation front, at
CMP of Rs366, the stock is trading at 3.2 x FY13 and 2.6x FY2014 P/BV. By looking at healthy NIM
growth and assets quality, we believe the current valuation is attractive.

IndusInd Bank:: Target Price: ` 434 Buy:: Dolat Capital

We initiate coverage on IndusInd Bank with a Buy rating. Post smooth transition brought by incumbent senior
management, the bank has been strengthening itself gradually in each of the key areas. Well-diversified retail
loan book, more focus on relatively newer retail product lines and improvement in SA deposits hereon would
aid margin. Core fee income would continue robust performance with investment banking, trade finance and
forex income. High T ier I capital warrants the bank’s strong business growth without raising additional equity
capital in near future. We rate the stock as a Buy with a target price of ` 434 at 3.1x ABV FY14. At current
market price, the stock trades at 3.0x and 2.5x ABV FY13 and FY14 respectively

IndusInd Bank::Prabhudas Lilladher, Banks/Financials conference

􀂄 Growth Outlook: Management seemed less cautious than Kotak bank and
expects to grow ~25-30% in FY13. Management is still seeing opportunities in
building up a 2nd hand vehicle, car and LAP business. IIB has stayed away from
mortgages given low yields but is increasing focus on LAP and expects to build a
significant book though competition is increasing in the LAP space.
􀂄 Margins‐ Worst behind us: Like most retail banks, IIB believes that worst in
terms of margins is behind and easing rates should aid in improving margins. IIB
has seen its NIMs come off for 5 qtrs now and lower funding costs will aid ROAs
going forward.
􀂄 Fee income traction to continue: Fee income/assets for IIB has already reached
industry best levels of 2% but management expects the growth to still continue.
They believe on the corporate side, FX and IB business still have significant room
for growth and outstrip B/S growth. On the retail side, increasing distribution
will add to cross sell opportunities which has been limited.
􀂄 Asset quality sanguine: Falling CV rentals have been our concern echoed by
Kotak/HDFCB but IIB is not seeing any material stress in their CV portfolio
currently though diesel price hike can be a risk to this portfolio. Corporate book
is working capital linked and with no Infra exposure, management expects
strong trend to continue. Overall IIB continues to guide 60-70bps of credit costs
v/s our 75-80bps credit cost assumption.

Indusind Bank :PAT beat on higher other income: Nomura research,

Key highlights
IndusInd Bank reported a PAT of INR2.36bn, marginally higher than our
estimate of INR2.29bn (Street est. of INR2.31bn) on the back of higherthan-
expected other income. Key highlights from the quarter include:
 Loan book growth remained strong (up 31% y/y), primarily driven by
48% increase in consumer finance loans, while the corporate book
increased at 20% y/y. While NII was below our estimates, strong fee
income of 42% y/y and trading gains of INR0.5bn (vs our estimate of
INR 0.27bn) supported the earnings beat.
 Margins declined 7bps sequentially to 3.22% due to 35bps q/q
increase in cost of funds vs 28bps q/q increase in yield on assets.
 Deposits grew at 28% y/y with savings deposits continuing to be strong,
growing 9.5% q/q leading to 56bps improvement in the CASA ratio at
27.9%.
 Asset quality was largely stable with sequentially flat GNPL and NNPL
ratios at 0.97% and 0.27%, respectively. The bank did not add any
restructured loan during the quarter (the restructured book stands at
0.24% of the loan book). However, higher slippage of INR1.09bn vs
our forecast of INR0.83bn led to LLPs of 50bps vs our estimate of
37bps.
 Total CAR was at 13.4% (including full-year profits) with Tier-I CAR at
11.2% (including full-year profits).

IndusInd Bank - Q1FY13 result first cut: Microsec

IndusInd Bank Ltd has announced its Q1FY13 result on 10^th July 2012. The bank’s total income increased by 6.14% QoQ and 32.62% YoY to INR318.78 crores. It is mainly, because of the healthy YoY growth in bank’s Other Income and Net Interest Income (NII) by 47.99% and 24.13% respectively. The Profit After Tax (PAT) increased by 5.77% QoQ and 31.12% YoY to INR236.26 crores.

IndusInd Bank - Unleashing second leg of growth; initiating coverage; Buy : Edelweiss, PDF link

IndusInd Bank (IIB IN, INR 328, Buy)

Having successfully completed Phase I of its growth strategy, the management team at Indusind Bank (IIB), led by Mr. Romesh Sobti, is ready with the Phase II line up. Driven by a network expansion-led CASA improvement and newer avenues of fee income, we expect the bank to deliver 25% CAGR in earnings (one of the highest in our universe) supported by best-in-class return ratios. We initiate coverage with ‘BUY’ with TP of INR380 (valuing at 3.2x FY13E book-15% discount to HDFC Bank).

Technical Query :IndusInd Bank, Sun TV, Geodesic, Sterlite Industries, Hindustan Zinc, RCom, Grasim Industries, :Business Line

IndusInd Bank: Another strong quarter :: Kotak Securities PDF link

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http://www.kotaksecurities.com/pdf/indiadaily/indiadaily20042012.pdf


Results
Hindustan Zinc: Good quarter; silver to drive growth in FY2013E
Ambuja Cements: Realizations decline in peak construction season
ACC: Muted price rise could weigh on 2QCY12E as well
IndusInd Bank: Another strong quarter

Sector
Insurance: Business traction improves in last month of FY2012

Strategy
Strategy: No escaping GAAR

IndusInd Bank- Firing on all cylinders :Prabhudas Lilladher,

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IndusInd reported better‐than‐expected PAT of Rs2.23bn (up 30% YoY) led by a
beat in loan growth and stronger‐than‐expected fee income momentum. Apart
from improving profitability and strong growth, IIB continues to deliver on all its
cycle II growth strategies, and like HDFCB, is well placed to deliver strong PAT
growth in FY13. Current valuations at 3.1x FY13 book are not cheap but consistent
and all round performance inspires confidence. Hence, we maintain our ‘BUY’
rating, with a revised PT of Rs400/share.
􀂄 Surprise in top‐line performance: NII was ~4% higher-than-expected due to
strong sequential loan growth (8% QoQ) and surprise in margins, with ~5bps
accretion QoQ v/s a marginal contraction expected. Fee income growth has
been exceptionally strong at ~60% YoY growth in Q4FY12, with growth across all
segments. With margins expected to improve in FY13, we believe IIB will be able
to sustain its top-line growth momentum in FY13.
􀂄 Delivering on all its cycle II growth drivers: After the 08-11 growth phase,
management had laid out it’s cycle II growth drivers and we continue to see
management delivering on most counts including (1) improving liability
franchise with ~2.5% SA accretion post SA re-regulation (2) filling up the product
gap (LAP/credit cards) on the retail side and most importantly (3) gaining
significant fee income traction in personal distribution and IB business.
􀂄 Strong PAT growth to sustain in FY13: With a large fixed rate asset base, we
expect margins to improve by ~15-20bps in FY13 and drive profitability
improvement. We increase FY13/14 estimates by ~7-8% on higher growth and
margins and with credit costs at ~75bps for FY13, there could be further upsides.
􀂄 Maintain ‘BUY’, with a PT of Rs400/share: Current valuations at 3.1x FY13 book
are not cheap but high loan growth, strong fee income momentum and very
limited asset quality risk inspire confidence. We maintain our positive view on
IIB.

Kotak Sec:: PDF link: DLF, Essar Oil, Tata Power, IDFC, RCom, Shriram Transport Finance, Reliance Capital, Eros, MTNL, Puravankara, JSW steel, Sun TV, Tata Steel, IndusInd Bank,

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Daily Alerts
Results
DLF: Right course but still in rough waters
Oil India: Country cousin steals a march
Tata Power: Coal production ramps up, low cost coal gives Mundra hope
IDFC: Growth strong, core in line
Reliance Communications: Weak results but do they matter?
Shriram Transport: A flat quarter
Reliance Capital: A mixed quarter
Eros International: Growing up
MTNL: Operational strife continues
Puravankara Projects: In-line results, poor sales


Results, Change in Reco
JSW Steel: Reports consolidated loss; stock expensive
Sun TV Network: A rainy quarter; Sun hides behind the clouds
Change in Reco
Tata Steel: Negatives out of the way
IndusInd Bank: Limited risks to business; valuations cap returns in the near
term


Sector
Consumer products: Hale and hearty, for now
Economy
Economy: IIP growth likely to be near the bottom