IndusInd Bank Q1 results: Profit rises 32% to Rs 2,124 crore, meets Street expectations

IndusInd Bank on Tuesday reported a 32.45 per cent year-on-year (YoY) rise in standalone net profit at Rs 2,123.62 compared with Rs 1,603.29 crore in the corresponding quarter last year. The profit growth print came in-line with Street expectations.

Net interest income (NII) for the quarter came in at Rs 4,867.11 crore compared with Rs 4,125.20 crore in the same quarter last year, up 17.98 per cent. 

Net interest margin (NIM) improved marginally to 4.29 per cent for the June quarter against 4.28 per cent in March and 4.21 per cent in the year-ago quarter. Asset quality improved with gross non-performing assets as percentage of gross advances stood at 1.94 per cent for the June quarter compared with 1.98 per cent in March and 2.35 per cent in the year-ago quarter.

The bank made Rs 991.51 crore in provisions and contingencies for the quarter compared with Rs 1030.05 crore in March and Rs 1,250.99 crore in the same quarter last year.

On a consolidated basis, net profit stood at Rs 2,124 crore, up 30 per cent over Rs 1,631 crore YoY.

Pre-provision operating profit (PPOP) sood at Rs 3,831 crore, up 12 per cent over Rs 3,431 crore YoY. Yield on assets stood at 9.60 per cent for the quarter against 8.35 per cent YoY. Cost of fund stood at 5.31 per cent against 4.14 per cent YoY. Core Fee grew 19 per cent YoY to Rs 2,119 crore against Rs 1,786 crore for the corresponding quarter of previous year.

Management commentary

Managing Director & CEO Sumant Kathpalia said: "The quarter witnessed economic activity in the country gaining momentum as is visible from various high frequency indicators. India remains a bright spot and the relative attractiveness was reflected in healthy foreign investment inflows during the quarter. The bank too began executing on its next 3-year plan (PC-6) starting Q1 focused on growth, granularity and governance."

IndusInd Bank, Kathpalia said, maintained healthy loan growth rate of 22 per cent YoY driven by both consumer and corporate segments. The loan growth was supported by retail deposit growth (as per LCR) of 21 per cent YoY and overall deposit growth of 15 per cent.

"The asset quality metrics too improved this quarter with lower fresh slippages and provisions YoY and QoQ. The bank thus reported a healthy operating profit of Rs 3,831 crore and net profit after tax of Rs 2,124 crore growing 30 per cent YoY. Overall, Q1 marks a healthy start to our PC-6 strategy and we remain committed to achieving our ambitions outlined in the plan," Kathpalia said.

The balance sheet size as on June 30 stood at Rs 4,66,993 crore against Rs 4,10,100 crores in the year-ago quarter, up 14 per cent.

Deposits as on June 30 stood at Rs 3,47,047 crore against Rs 3,02,719 crore, up 15 per cent YoY. CASA deposits increased to Rs 1,38,440 crore with Current Account deposits at Rs 49,343 crores and Savings Account deposits at Rs 89,097 crores. CASA deposits comprised 40% of total deposits as at June 30, 2023. Advances as of June 30, 2023 were Rs 3,01,317 crore against Rs 2,47,960 crore, up 22 per cent YoY.

Also read: Hot stocks on July 18, 2023: Adani Enterprises, Mazagon Dock, Reliance Industries, Brightcom Group, others

Also read: Adani Enterprises shares rally 4% post AGM. Here's why