IndusInd Bank shares sink 18% after Q2 profit slumps 39% YoY. Should you buy, sell or hold?
IndusInd Bank Share Price: Jefferies, Nomura, Investec, Nuvama, and IIFL have downgraded their ratings on IndusInd Bank due to weaker asset quality, lower Net Interest Margins, and softer loan growth. Target prices have been reduced significantly, reflecting concerns over profitability and...
IndusInd Bank shares fall 20% after Q2 profit drop, asset quality deterioration - CNBC TV18
Out of the 50 analysts that have coverage on IndusInd Bank, 41 of them still have a "buy" rating on the stock, eight say "hold" and one has a "sell" rating on the lender.
Shares of Private sector lender IndusInd Bank Ltd. fell as much as 20% on Friday, October 25, after the lender reported its quarterly results after market hours on Thursday.
IndusInd Bank reported a significant drop in its consolidated net profit for the second quarter of FY25, falling 39.5% year-on-year to ₹1,331 crore. In the corresponding quarter last year, the bank had posted a net profit of ₹2,181 crore.
The bank’s net interest income (NII), a key indicator of profitability, saw a growth of 5% on-year to ₹5,347 crore during the July-September quarter, compared to ₹5,077 crore in the same period last year. Despite the growth in NII, the overall profit fell, indicating pressure on other financial metrics.
However, the growth in NII was below market expectations. The bank’s net interest margin (NIM), a key indicator of profitability, fell to 4.08% from 4.29% in the year-ago period, indicating some pressure on margins.
IndusInd Bank's asset quality saw deterioration over the June quarter. Gross NPA stood at 2.11% from 2.02% in June, while Net NPA stood at 0.64% from 0.6% in June.
In absolute terms, Gross NPA increased to ₹7,638.5 crore from ₹7,126.8 crore in June, while the Net NPA increased to ₹2,282 crore from ₹2,095 crore in June.
