CLSA on IndusInd BK ; Hold, TP Rs 910

2QFY27 PPOP was 13% ahead of estimate, mainly driven by strong fee income, while slightly lower provisions resulted in a big PAT beat. Fee income grew 22% YoY, with the fee-to-asset ratio improving c.20bps QoQ. It was also broad-based. Loan growth continued to accelerate, albeit led by wholesale, while core NIM declined 12bps QoQ due to the impact of FCNR deposits and an adverse loan mix. Management maintained its FY27 guidance of industry-level loan growth and a 1% exit ROA. Asset quality continued to improve, with net slippage declining 40bps QoQ to 1.1% (now at a steady-state level)

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