BQ Prime’s special research section brings together in-depth and quality research reports on stocks and the economy from India’s top brokers, asset managers and research agencies. These reports offer BQ Prime subscribers the opportunity to broaden their understanding of companies, sectors and the economy.
Systematix Research Report
Our readings of the FY22 annual report of IndusInd Bank Ltd. show that the credit mix of its corporate and commercial businesses grew at a faster rate than the consumer credit division. We believe most of the incremental credit growth in CCB was for large corporate working capital loans (read higher cash credit mix).
The resulting margin erosion in this business was offset by the higher mix of unsecured credits in the consumer credit division. IndusInd Bank moved slowly in the merchant banking and micro-lending segments, due to higher stress levels.
Importantly, fixed income markets are indicating an increase in the credit risk spread between five-year AAA-rated paper and the corresponding G-Sec yield to maturity, which is currently at its highest. high level over three years. The difference between the yields of BBB-rated papers of similar maturity and those of AAA-rated papers has also reached an all-time high over the past 16 years.
Click on the attachment to read the full report:
This report is written by an external party. BQ Prime does not guarantee the accuracy of its content and is in no way responsible for it. The content of this section does not constitute investment advice. For this, you should always consult an expert based on your individual needs. The opinions expressed in the report are those of the authoring entity and do not represent the opinions of BQ Prime.
Users have no license to copy, modify or distribute the content without the permission of the original owner.