IndusInd Bank net profit rose 58 per cent annually to Rs 1,964 crore in quarter ended December 2022 compared with Rs 1,242 crore during the same period last year. The sharp jump in profit came on the back of decline in provisions for bad loans and strong growth in loans.
The bank's net interest income, the difference between interest earned from loans and expended on deposits, jumped 18.5 per cent to Rs 4,495 crore versus Rs 3,794 crore.
Net interest margin (NIM) improved to 4.27 per cent as compared to 4.10 per cent for Q3 FY22 and 4.24 per cent for Q2 FY23
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IndusInd Bank's provisions for bad loans and contingencies dropped 36 per cent to Rs 1,065 crore as against Rs 1,654 crore in the year ago period.
Its asset quality saw an improvement during the quarter as gross non-performing assets (NPAs) as a percentage of total advanced dipped to 2.06 per cent from 2.48 per cent during the same period last year.
In absolute terms, gross NPAs came in at Rs 5,711 crore versus Rs 5,779 crore in the year ago period.
The provision coverage ratio was consistent at 71 per cent as at December 31, 2022. Provisions and contingencies for the quarter ended December 31, 2022 were Rs 1,065 crore as compared to Rs 1,654 crore for the corresponding quarter of previous year, reduced by 36 per cent YoY. Total loan related provisions as on December 31, 2022 were at Rs 7,435 crore (2.7 per cent of loan book), the Mumbai-based lender said in a press release.
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As of December 31, 2022, the bank’s distribution network included 2,384 branches outlets and 2,894 onsite and offsite ATMs, as against 2,103 branches and 2,861 onsite and offsite ATMs during the same period last year.
Advances in December quarter came in at Rs 2,72,754 crore as against Rs 2,28,583 crore, an increase of 19 per cent over same period last year.
“Indian economy continues to be a bright spot in the world even though the external macros are challenging. With strong fundamentals, the Indian banking sector has been resilient and continues to aid in the economic recovery. IndusInd Bank too continued its growth momentum across metrics. Bank's loan growth was at 19 per cent YoY with all segments contributing to the growth. Retail deposits (as per LCR disclosure) grew by 21 per cent YoY. GNPA was lower at 2.06 per cent and NNPAs range bound at 0.62 per cent with a healthy PCR of 71 per cent. Bank's Core Operating Profit grew by 11 per cent YoY bolstered by better NIMs and healthy client fees. Profit after Tax was at Rs 1,964 crores growing 9 per cent QoQ and 58 per cent YoY. The Bank remains on track to achieve its strategic ambitions and having financial metrics in the top quartile of the industry," said Sumant Kathpalia, Managing Director & CEO.
IndusInd Bank shares closed 0.7 per cent lower at Rs 1,222 ahead of its December quarter earnings announcement.
