IndusInd Bank Q2 Results: Net Profit Falls 40% YoY To Rs 1,331 Crore Despite Loans Growing By 13% YoY

Private sector lender, IndusInd Bank has reported a sharp decline of 39.6% in its net profit to Rs 1,331 crore in the second quarter of FY25, compared to Rs 2,202 crore a year ago same quarter. The Q2FY25 profit is adjusted for the increase in contingent provision buffer was at Rs 1,725 crore.

Meanwhile, in the quarter under review, IndusInd Bank reported net interest income (NII) of Rs 5,347 crore, up by 5% YoY from Rs 5,077 crore in Q2FY24.

Among key ratios, in Q2FY25, NIM came in at 4.08%, Net NPA at 0.64%, Provision Coverage Ratio at 70%, Capital Adequacy Ratio (CRAR) at 16.51% CASA at 35.87% and Liquidity Coverage Ratio at 118% underscore the strength of operating performance of the Bank and adequacy of capital.

Also, deposits crossed the Rs 4 trillion mark, registering a growth of 15% YoY to Rs 4,12,317 crore in Q2FY25. While loans 13% YoY to Rs 3,57,159 crore in Q2FY25.

On the performance, Sumant Kathpalia, Managing Director & CEO, of IndusInd Bank said, "The Indian economy continued resilient performance despite increasingly turbulent global landscape. The Banking industry however has seen continued competitive intensity for deposits and divergent trends for growth and asset quality in unsecured loans versus secured loans. IndusInd Bank too aligned its strategy focusing on ramping up retail deposit mobilization, maintaining traction on secured loans, de-growing unsecured loans and building conservative buffers on provisions.

Additionally, other income at Rs 2,185 crores for the quarter ended September 30, 2024, as against Rs 2,282 crores for the corresponding quarter of the previous year. Core Fee at Rs 2,125 crores as against Rs 2,120 crores for the corresponding quarter of previous year, as per the financial report.

Kathpalia added, "The Capital Adequacy remains healthy at 16.51% and Liquidity Coverage at 118 % well above regulatory thresholds. The Bank thus has strengthened the balance sheet during the quarter and will look towards growth acceleration in tandem with the underlying economy."

Key highlights of H1FY25:

- Net Interest Income for the half year ended September 30, 2024, increased to ₹10,755 crores, up by 8% from ₹9,944 crores corresponding previous half year.

- For the half year ended September 30, 2024, the Bank earned Total Income (Interest Income and Fee Income) of Rs 29,860 crores as compared to ₹26,469 crores for the corresponding previous half year.

- Net Profit for the half year ended September 30, 2024 was ₹3,502 crores as compared to ₹4,326 crores during corresponding previous half year.

- Balance sheet footage as on September 30, 2024 was ₹5,43,407 crores as against ₹4,77,922 crores as on September 30, 2023, showing growth of 14%.

- The loan book quality remains stable. The Gross NPA were at 2.11% of gross advances as on September 30, 2024 as against 2.02% as on June 30, 2024. Net Non-Performing Assets were 0.64% of net advances as on September 30, 2024 as compared to 0.60% as on June 30, 2024.

As of September 30, 2024, the Bank's distribution network included 3040 branches/ Banking outlets and 3011 ATMs, as against 2631 Branches/ Banking outlets and 2903 ATMs as of September 30, 2023. The client base stood at 41 million as on September 30, 2024.