IndusInd Bank Q2 PAT Jumps 22% YoY to Rs 2,202 Cr On Stable Asset Quality

At its meeting on Wednesday, October 18, 2023, held in Mumbai, the Board of Directors of IndusInd Bank Limited accepted the bank's financial performance for the quarter/half year ended September 30, 2023. The bank said that its net profit for the quarter ended September 30, 2023 was Rs 2,202 crores, up 22% YoY from Rs 1,805 crores during the comparable period the previous year.

Its Net Interest Income (NII) climbed by 18% YoY and 4% QoQ to Rs 5,077 crores for the quarter that ended on September 30, 2023. In comparison to 4.24% for Q2 of FY 2023 and 4.29% for Q1 of FY 2024, the net interest margin for the second quarter of FY 2024 was 4.29%.

The bank said that its other income grew by 13% YoY to Rs 2,282 crores for the quarter ended September 30, 2023, from Rs 2,011 crores in Q2FY23. Core Fee grew by 13% YoY to Rs 2,120 crores from Rs 1,872 crores in the same quarter last year. Operating expenses for the bank were up 25% YoY to Rs 3,450 crores for Q2FY24 from Rs 2,769 crores in Q2FY23.

As of September 30, 2023, the bank's balance sheet was Rs 4,77,922 crores as opposed to Rs 4,26,575 crores in the year-ago quarter, an improvement of twelve per cent. Deposits jumped by 14% from September 30, 2022 to September 30, 2023, totalling Rs 3,59,548 crores as opposed to Rs 3,15,532 crores. CASA deposits climbed to Rs. 1,41,437 crores, which includes Rs. 49,910 crores in current account deposits and Rs. 91,527 crores in savings account deposits. As of September 30, 2023, CASA deposits made up 39% of all deposits.

According to the bank, advances as of September 30, 2023 were Rs 3,15,454 crores as opposed to Rs 2,60,129 crores, up 21% from September 30, 2022. On September 30, 2023, the bank's gross non-performing assets (NPA) were at 1.93% of gross advances, down from 1.94% on June 30, 2023. On September 30, 2023, net advances represented 0.57% of net non-performing assets, down from 0.58% on June 30, 2023. As of September 30, 2023, the Provision Coverage Ratio was constant at 71%. For the quarter that ended on September 30, 2023, provisions and contingencies were Rs 974 crores as opposed to Rs 1,141 crores for the same quarter the previous year, a 15% YoY drop.

The bank said that its yield on assets for the quarter ended September 30, 2023 was 9.69%, compared to 8.65% for the same period the previous year. According to IndusInd Bank, the bank's operating performance and capital adequacy are strong as evidenced by its NIM of 4.29%, Net NPA of 0.57%, Provision Coverage Ratio of 71%, Capital Adequacy Ratio (CRAR) of 18.21%, CASA of 39%, and Liquidity Coverage Ratio of 117%.

As of September 30, 2023, the bank maintained total loan-related provisions of Rs 7,267 crores (2.3% of loan book). The bank's Total Capital Adequacy Ratio, calculated in accordance with Basel III requirements, was 18.21% as of September 30, 2023, up from 18.01% in the year-ago quarter. In comparison to 16.44% on September 30, 2022, Tier 1 CRAR was at 16.75% as of September 30, 2023.

Mr. Sumant Kathpalia, Managing Director & CEO, IndusInd Bank said: "The Indian economy continues to show resilience aided by effective fiscal and monetary actions despite increasing global geo-political uncertainty. The economic activity is expected to pick up pace with upcoming festive demand and robust consumption.

IndusInd Bank too has seen robust growth during the quarter with retail loan growth of 25% driving overall loan book growth of 21%. The asset quality metrics were stable for the quarter with GNPA of 1.93% vs 1.94% QoQ and NNPA of 0.57% vs 0.58% QoQ. The net profit for the quarter was at ₹2,202 growing 22% YoY and 4% QoQ.

The bank has also maintained performance metrics at healthy level in terms of NIMs at 4.29%, RoA at 1.90%, RoE at 15.33% and CRAR at 18.21%. The bank continues to invest in new growth initiatives as seen with the launch of a digital app INDIE and scale up of affluent banking, NRI banking and home loans. We expect these initiatives should support long term growth opportunity for the bank."

In comparison to September 30, 2022, when there were 2320 branches/banking outlets and 2807 ATMs, there were 2631 branches/banking outlets and 2903 ATMs as of September 30, 2023. 37 million individuals made up the customer base as of September 30, 2023, for IndusInd Bank.