The private lender reported reported robust earnings in the December quarter driven by strong loan growth and stable asset quality. At ₹3,27,057 crore, the bank registered a loan growth of 20 per cent year-on-year (YoY), while deposits grew 13 per cent annually.
“Indian economy continues to show robust momentum delivering real GDP growth of 7.6 per cent in Q2. The regulatory and fiscal policies have been effectively mitigating geo-political uncertainties in the global economy,” said Sumant Kathpalia, Managing Director & CEO, IndusInd Bank.
IndusInd Bank too continues to participate in the healthy economic outlook. The bank’s loan book grew by 20 per cent YoY driven by robust retail segment growing 24 per cent YoY…The bank remains on track in executing its strategy of delivering growth, granularity and governance,” added Kathpalia.
Here are 5 key highlights of IndusInd Bank Q3 scorecard:
1.Profit and Loss account: NII, NIM
The bank’s net interest income (NII) – the difference between interest earned and interest expended for the December quarter rose 17.8 per cent at ₹5,296 crore, compared to ₹4,495 crore in the year-ago period.
The net interest margin (NIM) in the December quarter stood at 4.29 per cent, compared to 4.27 per cent in the same period last year. The operating expenses for the December quarter rose 27 per cent to ₹3,650 crore as against ₹2,885 crore in the year-ago period.
2.Balance Sheet
‘’Balance sheet footage as on December 31, 2023 was ₹4,88,865 crore as against ₹4,44,485 crore as on December 31, 2022, showing growth of 10 per cent,” said IndusInd Bank in its regulatory filing to the stock exchanges.
Deposits rose 13 per cent to ₹3,68,793 crore compared to ₹3,25,278 crore in the year-ago period. CASA deposits increased to ₹1,41,924 crore with Current Account deposits at ₹50,044 crore and Savings Account deposits at ₹91,880 crore. CASA deposits comprised 38 per cent of total deposits in the quarter.
Advances rose 20 per cent to ₹3,27,057 crore in the December quarter, compared to ₹2,72,754 crore in the year-ago quarter.
3.Asset Quality
The bank’s gross non-performing assets (NPA) stood at ₹6,377 crore and were at 1.92 per cent of gross advances as on December 31, 2023 as against 1.93 per cent in the preceding September quarter. The net NPA stood at ₹1,875.2 crore and were 0.57 per cent of net advances in the December quarter, compared to 0,62 per cent in the year-ago period.
The Provision Coverage Ratio was consistent at 71 per cent as at December 31, 2023. Provisions and contingencies for the December quarter reduced nine per cent to ₹969 crore, compared to ₹1,065 crore in the year-ago period. The total loan related provisions as on December 31, 2023 were at ₹7,242 crore, which is 2.2 per cent of the loan book.
4.Capital Adequacy
The bank’s total capital adequacy ratio (CAR) as per Basel III guidelines stands at 17.86 per cent as on December 31, 2023, compared to 18.01 per cent in the uear-ago quarter. Tier 1 CRAR was at 16.47 per cent as on December 31, 2023 compared to 16.47 per cent as on December 31, 2022. The risk-weighted assets were at ₹3,70,412 crore compared to ₹3,22,484 crore in the year-ago period.
5.Network
As of December 31, 2023, the IndusInd Bank’s distribution network included 2,728 branches/ banking outlets and 2,939 onsite and offsite ATMs, compared to 2,384 branches ,and 2894 onsite and offsite ATMs in the year-ago period. The client base stood at 3.8 in the December quarter.
Ahead of the announcement of Q3FY24 results, shares of IndusInd Bank settled 1.82 per cent lower at ₹1,613.15 apiece on the BSE.
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Published: 18 Jan 2024, 04:23 PM IST