Private sector lender IndusInd Bank on Monday reported a 35.07 per cent jump in its consolidated net profit at Rs 4,458.18 crore for the financial year ended March 31, 2020, compared to Rs 3,300.75 crore during FY19."Net Interest Income, the difference between interest earned and interest expended, for FY20 increased to Rs 12,058.74 crore, up by 36.32 per cent from Rs 8,846.18 crore in the year ago period," IndusInd Bank said in a filing to the Bombay Stock Exchange.
Net interest margin for FY20 improved to 4.14 per cent. Revenue (net interest income and fee income) was Rs 19,011.42 crore, up by 31.18 per cent over Rs 14,492.90 crore for FY19.
For the year ended March 31, 2020, the bank earned total income of Rs 35,735.50 crore versus Rs 27,907.87 crore in the previous year, registering a growth of 28.05 per cent.
Operating expenses for FY20 were Rs 8,182.59 crore, an increase of 27.75 per cent over Rs 6,405.30 crore in FY19. The cost-to-income ratio improved to 43.04 per cent from 44.19 per cent in FY19.
Provisions and contingencies were Rs 6,370.96 crore as compared to Rs 4,787.12 crore for the previous year 2018-19.
On the asset quality front, the gross non-performing assets (GNPAs) rose to 2.45 per cent of gross advances as on March 31, 2020 as against 2.18 per cent as on December 31, 2019 and 2.10 per cent as on March 31, 2019. The net non-performing assets (NNPAs) were 0.91 per cent of net advances as on March 31, 2020 as compared to 1.05 per cent on December 31, 2019 and 1.21 per cent on March 31, 2019.
For the fourth quarter ended March 31, 2020 (Q4FY20), consolidated net profit fell 12.31 per cent year-on-year to Rs 315.25 crore. The bank's total income (interest income and fee income) was up 21.3 per cent to Rs 9,158.80 crore as compared to Rs 7,550.43 crore in the corresponding quarter of previous year. Net interest income increased to Rs 3,231.19 crore, up by 44.74 per cent from Rs 2,232.38 crore for Q4 FY19. Net interest margin for Q4 FY20 improved to 4.25 per cent from 3.59 per cent during Q4 FY19.
On the standalone basis, the profit declined 76.8 per cent to Rs 301.84 crore as against the previous quarter's net profit at Rs 1,300.2 crore, dented by higher provisions and lower other income. Net interest income grew by 5.1 per cent sequentially to Rs 3,231.2 crore.
Total deposits as of March 31, 2020 were Rs 2.02 lakh crore, an increase of 3.67 per cent over March 31, 2019. CASA deposits stood at Rs 81,557.02 crore with current account deposits at Rs 28,427.19 crore and saving account deposits at Rs 53,129.83 crore. Total advances were Rs 2.06 lakh crore, an increase of 10.94 per cent over March 31, 2019.
On current situation, the bank there is a high level of uncertainty about the duration of the lockdown and the time required for things to return to normal.
"In this backdrop, during the quarter and year ended March 31 2020, on the basis of an internal assessment, the bank has made a counter cyclical buffer provision of Rs 260 crore," it said in the regulatory filing.
In line with the RBI's COVID regulatory package, the bank offered a moratorium on instalments and interest payable to eligible borrowers. It said. "In respect of such borrowers to whom the benefit of asset classification was extended consequent to the moratorium, the bank made a general provision of Rs 23 crore during the quarter and year ended March 31, 2020," IndusInd Bank said.
Ahead of earnings announcement, shares of IndusInd Bank closed Monday's trade at Rs 407.35 apiece, up 6.33 per cent, against previous closing price of Rs 383.10 on the Bombay Stock Exchange.