Indusind Bank – Providing Services to a resurgent manufacturing?

Cement  Dispatches up 8% on month and suddenly the below 5% core inflation number is showin g in the growth in Indusind profits by near 40% to INR2.31 bln Thoughhgher dispatches could not support the prev Quarter EBITDA at Ambuja cement and JPassociates continues to languish in the new economic set up, Indus ind itself continues to surprise financially after investors ignored vestigial baggage at the top and in the boardroom to increase their valuation of the company and grow the banks CAR earlier in February. The bank seems to have grown some green shoots in other industry clients moving away from the base provided by the hinduja owned Ashok leyland as  it refashions business boundaries with other newcomer Religare in lending, broking and even investment banking per se as corporate like to figure outt he enigma of ramesh sobti and Oil and gold trades move on to harder investments in India sans retail FDI and sans Kingfisher

A roadblock close ahead, tied to Indias myriad concerns with internal fiscal andp political security is the fact that Indian banks and PE are hardly encouraged to go with Indian corporates and help them bid for Foreign resources and industry assets, the last one in Ssangyong’s M&M sale a far distant dream

Recent research from Fairwealth parks IIB to a retail book growth of 30% each in FY13 and FY14 to INR 250 bln, and for all practical purposes its overall book will still be close to INR 500 bln by then even with the emphasis on retail assets for growth. CV financing continues to bleed NPLs while adding strnegth to the book While CASA is likely to have improved further from 25% last quarter, its 300 new branches should look at a higher volume of business than currently estimated by research. A branch network of 650 branches should help NIMS and also Capital raising from larger investors as it sheds the label of mid cap and engineers a grwoth in book already stressed ( to be confirmed on avlblty of full financials) by the growth in book to less than 11%

 

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