Stockrabit · Analysts
Questions across 2 calls

Suresh Ganapathy

Macquarie Group

IndusInd Bank Limited

IndusInd Bank Limited CC-Sep23.pdf · 2023-10-18
Sumant, I have a question on contingent provisions because if you are saying you want to make INR300 crores contingent provisions this year and make 1.3% credit cost, including that, then why did you dip into INR500 crores of contingent provision in first half, you did INR500 crores and then you make INR300 in second half. So, this not a coherent strategy I feel. So just wanted to get a clarity on this. How are you looking at it are we still maintaining that you will be between 1.1% to 1.3%, inclusive of the INR300 crores contingent provisions that you want to make this year?
Okay. Now the thing is about slippages, right? So, see your slippage is up this quarter, you had some corporate numbers, so you ha d INR1,400 crores of slippages a nd last quarter was a somewhat similar number. So, you see this number trending down, you're saying in the second half, right?
IndusInd Bank Limited CC-Sep24.pdf ·
Just qualitative assessment because a lot has gone wrong the last couple of quarters. I mean, you always argue that you have lower exposure to Bihar, related to everybody else and some of the problematic states. And rightly, you always had a much lower ticket size in the MFI segment. Personal loans also not much exposure, but still 4% slippage ratio in the overall retail segmen t. Wouldn’t you have anticipated this or what is the behavior of the customers? Why have banks got it wrong? I mean, this industry has got it wrong. But even you have had a problem, right? Could you have not got this a little bit better?
The slippage is 5% . You have had Rs.400 crores gross and on an annualized basi s, that's around 5% number.