{"id":157873,"date":"2024-01-19T10:45:28","date_gmt":"2024-01-19T15:45:28","guid":{"rendered":"https:\/\/44.250.171.167\/?p=157873"},"modified":"2024-01-19T10:45:30","modified_gmt":"2024-01-19T15:45:30","slug":"indusind-bank-ltd-q3-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/indusind-bank-ltd-q3-fy24-earnings-conference-call-insights\/","title":{"rendered":"Indusind Bank Ltd Q3 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Indusind Bank Ltd (INDUSINDBK) Q3 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Loan Growth Momentum<\/strong>\n<ul>\n<li>The bank saw robust loan growth momentum across retail segments, with overall loan growth at 20% YonY.<\/li>\n<li>Retail loan growth was 24% YonY, driven by healthy growth in vehicles, microfinance, and consumer loans.<\/li>\n<li>Vehicle loan growth remained healthy at 20% YonY and 5% QonQ, with highest ever disbursements this quarter.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Strong Deposit Growth<\/strong>\n<ul>\n<li>Retail deposit growth gained pace this quarter, with one of the strongest sequential improvements in retail deposit share in LCR.<\/li>\n<li>Retail deposits grew 5% QoQ despite challenging liquidity environment.<\/li>\n<li>Increase in cost of deposits was moderate at 9bps QoQ.<\/li>\n<li>Saw good progress in new liability initiatives like affluent banking and NRI deposits.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Mixed Asset Quality Trends<\/strong>\n<ul>\n<li>Gross and net NPA ratios remained steady QonQ at 1.92% and 0.7% respectively.<\/li>\n<li>However, gross slippages were higher than expected at INR1765 crores.<\/li>\n<li>The vehicle finance slippages saw some sequential increase but have already started normalizing in January.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Digital Banking Momentum<\/strong>\n<ul>\n<li>The digital banking platform INDIE saw strong traction, acquiring over 0.8 million customers and seeing 4 million transactions per month within a short span post launch.<\/li>\n<li>Engagement on INDIE is increasing with users doing 35-40 transactions per month; product suite is being expanded.<\/li>\n<li>On mobile banking, monthly active users increased 15% YoY. Merchant app users doubled YoY.<\/li>\n<li>Over 50% of savings accounts and 40% of term deposits now acquired digitally in DIY manner.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Moderating Asset Quality Concerns<\/strong>\n<ul>\n<li>Gross and net NPA levels remained steady QoQ at 1.92% and 0.7% respectively.<\/li>\n<li>Vehicle finance slippages were temporarily higher but have already started normalizing from January onwards.<\/li>\n<li>Restructured book reduced QoQ in vehicle finance and microfinance segments.<\/li>\n<li>Corporate segment saw improved granularity, rating upgrades, and lower slippages annualized at 25bps versus 45bps last year.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Asset Quality Outlook<\/strong>\n<ul>\n<li>The bank expects gross slippages to normalize back to INR1100-1200 cr range in upcoming quarters.<\/li>\n<li>Corporate slippages should moderate going forward with one-off stress accounts already recognized.<\/li>\n<li>Other retail slippages higher in Q3 due to some one-offs in agri, merchant acquiring, but expected to steady.<\/li>\n<li>MFI slippages should also moderate in upcoming quarters with portfolio quality remaining steady.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margin Trajectory<\/strong>\n<ul>\n<li>The bank expects to maintain NIMs steady between 4.2-4.3% over next few quarters, in line with past trend.<\/li>\n<li>Lending margins are linked to external benchmarks so limited room for expansion unless risk profile deterioration.<\/li>\n<li>As funding cost pressures ease with deposit rate hikes moderating, lending rates also unlikely to see material increases.<\/li>\n<li>Overall margin outlook remains stable given balance sheet mix and as cost of funds stabilizes.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Vehicle Loan Growth Outlook<\/strong>\n<ul>\n<li>The bank has diversified its vehicle loan portfolio across categories, reducing dependence on any one segment.<\/li>\n<li>MHCV and tractor demand is dull currently, but growth expected from used CVs.<\/li>\n<li>Targeting vehicle loan disbursements of INR14,000 cr in Q4, similar to Q3 levels.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capital and Growth Outlook<\/strong>\n<ul>\n<li>Currently comfortable on capital front with CET1 at 16%.<\/li>\n<li>Expect capital raise to happen only when CET1 approaches 14%, likely in mid FY25.<\/li>\n<li>Internal accruals sufficient to fund growth in near term given falling risk weights.<\/li>\n<li>No immediate need or hurry for capital raise seen despite strong growth momentum.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Indusind Bank Ltd (INDUSINDBK) Q3 FY24 Earnings Concall Loan Growth Momentum The bank saw robust loan growth momentum across retail segments, with overall loan growth at 20% YonY. Retail loan growth was 24% YonY, driven by healthy growth in vehicles, microfinance, and consumer loans. Vehicle loan growth remained healthy at 20% YonY [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[8249,10169,1792],"class_list":["post-157873","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-banks","tag-earnings","tag-financial-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":155070,"url":"https:\/\/alphastreet.com\/india\/indusind-bank-ltd-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":157873,"position":0},"title":"IndusInd Bank Ltd Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"October 19, 2023","format":false,"excerpt":"Key highlights from IndusInd Bank Ltd (INDUSINDBK) Q2 FY24 Earnings Concall Loan Growth Momentum Loan growth continues to be strong at 21% YoY and 5% QoQ, driven by retail segment growing 25% YoY and 6% QoQ. Retail growth driven by healthy disbursements in vehicle and microfinance businesses. Corporate book also\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":144072,"url":"https:\/\/alphastreet.com\/india\/indusind-bank-ltd-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":157873,"position":1},"title":"IndusInd Bank Ltd Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"April 25, 2023","format":false,"excerpt":"https:\/\/youtu.be\/nu-pwBmBLoA Key highlights from IndusInd Bank Ltd (INDUSINDBK) Q4 FY23 Earnings Concall Management Update: [00:02:32] INDUJSINDBK said overall deposit growth was 15% YonY and 3% QonQ, while loan growth was 21% YonY and 6% QonQ. After 11 quarters, all domains and businesses are now showing healthy growth. [00:05:21] The company\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":157981,"url":"https:\/\/alphastreet.com\/india\/axis-bank-ltd-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":157873,"position":2},"title":"Axis Bank Ltd Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"January 24, 2024","format":false,"excerpt":"Key highlights from Axis Bank Ltd (AXISBANK) Q3 FY24 Earnings Concall GPS Strategy Performance Bank delivered over 18% ROE for last 6 quarters while maintaining better credit profile compared to past. Organically accreted 39 bps of CET1 capital in 9 months FY24. Focused on 3 areas - embedding performance culture,\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":160546,"url":"https:\/\/alphastreet.com\/india\/axis-bank-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":157873,"position":3},"title":"Axis Bank Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"April 25, 2024","format":false,"excerpt":"Key highlights from Axis Bank Ltd (AXISBANK) Q4 FY24 Earnings Concall Deposit Franchise Strengthening Focused on improving deposit quality and strength over the past couple of years. 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Total deposits grew 4.5X from INR39,602 crores to INR1,76,481 crores. Strong growth despite dropping interest rates. Shows strength of retail franchise and funding. Assumes\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":169525,"url":"https:\/\/alphastreet.com\/india\/indusind-bank-q1-fy26-stabilizing-the-ship-amid-digital-transformation\/","url_meta":{"origin":157873,"position":5},"title":"IndusInd Bank Q1 FY26 Earnings: Stabilizing the Ship Amid Digital Transformation","author":"Chirag Gupta","date":"July 30, 2025","format":false,"excerpt":"Executive Summary IndusInd Bank reported mixed Q1 FY26 results, demonstrating stabilization in core operations while continuing to navigate sector-wide challenges. 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