Stock To Watch: IndusInd Bank Reports 60% YoY Rise In Net Profit, Check Ex-Dividend Date

IndusInd Bank, a large-cap private bank in India reported its quarterly financial reports on July 20, showing a 60.5% YoY gain in net profit at Rs. 1,631.1 crore in Q1FY23. The results have beaten analysts' expectations of Rs. 1,423.5 crore.

Additionally, its net interest income (NII) has been reported at Rs. 4,125 crore increasing by 16% YoY and 4% QoQ. NIM has gained to 4.21% from 4.06% in the same period, last year. Total advances increased 18% to Rs. 1,631 crore as of June 30. The bank's gross non-performing assets (GNPA) fell by 4% YoY to Rs 5,932.90 crore. IndusInd Bank provided Rs. 1,250.99 crore towards bad loans in Q1FY23, which has decreased significantly from Rs. 1,779.33 crore made in Q1FY22. Microfinance loans have improved by 13% to Rs. 29,403 crore as of June 30, which is comprising 12% of the bank's loan book.

Share Price and Dividend

The bank is offering a dividend of Rs. 8.5 per share, as the bank informs, its ex-dividend date will be August 11, 2022, according to BSE data.

The bank's share price closed at Rs. 878.45, gaining by 1.15% on July July 20. In the last month, its share price has surged by 9.99%. With the healthier than expected financial results, the bank's stock price is expected to perform better.

Comments from the bank

The bank's MD and CEO, Sumant Kathpalia is expecting its credit growth for the current fiscal to be around 20%. Micro-finance, credit cards, and corporate loans will be the major focus areas for IndusInd Bank. According to available reports, the micro-finance de-growth has been mainly because the bank took 40-45 days to shift to the new regulatory norms, leading to lower disbursements during the period.