Shares of IndusInd Bank were weak in early trade Wednesday ahead of the private lender's second quarter earnings announcement.
At 10:20 am, IndusInd Bank shares were at Rs 358.50, down close to 2% from Tuesday's close. The bank is scheduled to announce its financial performance for July-September period post 1PM today in Mumbai.
The shares remained weak in line with the broader market despite expectations of over 20% growth in the bank's second quarter profit.
Analysts said there may be higher delinquencies in the bank's commercial vehicle loan book, which may lead to higher provisioning needs.
Brokerage Edelweiss Securities expects the bank to report a net profit of Rs 237.5 crore, up 23% from a year ago. "Loan growth continues to be strong. Margins are to be stable and fee income continues to be strong. We are building in higher provisions to account for higher delinquencies in the commercial vehicle book," the brokerage said.
IDFC Securities estimates IndusInd Bank's second quarter net profit to be around Rs 249 crore, up almost 29% from a year earlier.
