IL&FS pain still not over for IndusInd Bank, credit cost may rise 30-40 bps

FY20 is likely to start on a clean slate with expected traction in loan book and earnings

IndusInd Bank’s December 2018 quarter (Q3) results were broadly above the Street’s expectations. The bank reported net profit of Rs 985 crore, up 5.2 per cent year-on-year, against a consensus estimate of Rs 810 crore by Bloomberg analysts.

However, the reported net profit growth was its lowest since the March 2008 quarter — with the exception of September 2018 quarter — thanks to its exposure to the bankrupt IL&FS.

IndusInd has total exposure of Rs 3,000 crore to IL&FS (Rs 2,000 crore to the holding