IndusInd Bank Q3 Results: PAT Jump 17% YoY To Rs 2,301 Cr; Asset Quality Stable

At their meeting on Thursday, January 18, 2024, in Mumbai, the Board of Directors of IndusInd Bank Limited approved the bank's financial results for the quarter and nine months ended December 31, 2023. The bank said that its net profit for the quarter that ended on December 31, 2023, was Rs 2,301 crores, up 17% YoY from Rs 1,964 crores in the same period the previous year. At Rs 5,296 crores at the end of the quarter on December 31, 2023, Net Interest Income (NII) climbed by 18% YoY and 4% QoQ. In comparison to 4.29% in Q2 of FY24 and 4.27% in Q3 of FY23, the net interest margin for Q3 of FY24 was 4.29%.

The bank said that its other income jumped by 15% year on year to Rs 2,396 crores for the quarter ended December 31, 2023, from Rs 2,077 crores in Q3FY23. Core Fee climbed by 12% YoY to Rs 2,165 crores from Rs 1,941 crores in the same quarter last year. Operating expenses climbed by 27% to Rs 3,650 crores for the quarter that ended on December 31, 2023, from Rs 2,885 crores in the equivalent period of the previous year.

The quality of the loan book is steady. As of December 31, 2023, the gross non-performing assets (NPA) were at 1.92% of gross advances, down from 1.93% on September 30, 2023. As of December 31, 2023, net non-performing assets made up 0.57% of net advances, down from 0.57% on September 30, 2023. As of December 31, 2023, the provision coverage ratio remained constant at 71%. For the quarter ending December 31, 2023, provisions and contingencies totalled Rs 969 crores, down 9% YoY from Rs 1,065 crores in the same period the previous year. As of December 31, 2023, there were Rs 7,242 crores in total loan-related provisions (2.2% of loan book).

The bank's strong operational performance and enough capital are demonstrated by its NIM of 4.29%, Net NPA of 0.57%, Provision Coverage Ratio of 71%, Capital Adequacy Ratio (CRAR) of 17.86%, CASA of 38%, and Liquidity Coverage Ratio of 122%.

Mr. Sumant Kathpalia, Managing Director & CEO, IndusInd Bank said: "Indian economy continues to show robust momentum delivering real GDP growth of 7.6% in Q2. The regulatory and fiscal policies have been effectively mitigating geo-political uncertainties in the global economy. IndusInd Bank too continues to participate in the healthy economic outlook. The Bank's loan book grew by 20% YoY driven by robust retail segment growing 24% YoY. The asset quality metrics remained stable with GNPA at 1.92% and NNPA at 0.57%. The Profit After Tax was at Rs 2,301 crores growing 17% YoY and 5% QoQ. The Bank has healthy capital adequacy with CRAR at 17.86% as of Dec 2023. The Bank remains on track in executing its strategy of delivering Growth, Granularity and Governance."

According to the bank, the yield on assets for the quarter that ended on December 31, 2023, was 9.75%, compared to 8.99% for the same period the previous year. Cost of Fund is currently 5.46% compared to 4.72% for the same quarter last year.

Pre Provision Operating Profit (PPOP) for the bank jumped by 10% to Rs 4,042 crores for the quarter that ended on December 31, 2023, compared to Rs 3,686 crores for the same period the previous year. 3.41% was the PPOP/Average Assets ratio for the quarter that ended on December 31, 2023.
The bank has a 10% increase in its balance sheet footage as of December 31, 2023, with Rs 4,88,865 crores, compared to Rs 4,44,485 crores in the year-ago quarter.

Deposits climbed by 13% from December 31, 2022 to December 31, 2023, totalling Rs 3,68,793 crores compared to Rs 3,25,278 crores. With current account deposits of Rs 50,044 crore and savings account deposits of Rs 91,880 crore, CASA deposits climbed to Rs 1,41,924 crore. As of December 31, 2023, 38% of all deposits were CASA deposits. As of December 31, 2023, advances amounted to Rs 3,27,057 crores, up 20% from Rs 2,72,754 crores as of December 31, 2022.

According to Basel III rules, the bank's total capital adequacy ratio is 17.86% as of December 31, 2023, down from 18.01 percent as of December 31, 2022. Comparing December 31, 2022, to December 31, 2023, Tier 1 CRAR was 16.47% as opposed to 16.47%. Risk-Weighted Assets were at Rs 3,70,412 crores in Q3FY24 as against Rs 3,22,484 crores in Q3FY23.

Compared to December 31, 2022, when there were 2384 branches/banking outlets and 2894 onsite and offsite ATMs, the bank's distribution network has 2728 branches/banking outlets and 2939 onsite and offsite ATMs as of December 31, 2023. The number of clients as of December 31, 2023, was 38 million.