IndusInd Bank Q1FY24 profit surges 30.2% at Rs 2124.50 crore, loan book quality stable
IndusInd Bank posted its fiscal first quarter profit at Rs 2124.50 crore. Its Net Interest Income (NII) grew by 18 per cent to Rs 5862.5 crore from Rs 4125.3 crore on-year.
IndusInd Bank on Tuesday posted its fiscal first quarter profit at Rs 2124.50 crore.
Private sector lender IndusInd Bank on Tuesday posted its fiscal first quarter profit at Rs 2124.50 crore, up 30.2 per cent on-year, in line with the estimates. The bank had recorded a profit of Rs 1631.14 crore in the corresponding quarter of last year. Its Net Interest Income (NII) grew by 18 per cent to Rs 4867 crore from Rs 4125.3 crore on-year. Net Interest Margin for Q1 of FY24 stood at 4.29 per cent against 4.21 per cent for Q1FY23.
The total interest earned for the quarter ended June 2023 was at Rs 10,729.65 crore, up 31.1 per cent in comparison to Rs 8181.77 crore in the corresponding quarter of previous year. Meanwhile, IndusInd Bank posted a total income for the quarter at Rs 12,939.47 crore, up 27.9 per cent as against Rs 10,113.29 crore.
In terms of segment, IndusInd Bank’s treasury operations clocked a revenue of Rs 1796.63 crore during the first quarter of FY24, corporate/ wholesale banking posted revenue at Rs 3367.67 crore, and retail banking recorded the Q1 quarter at Rs 8512.91 crore.
The balance sheet as on June 30, 2023 was Rs 4,66,993 crore as against Rs 4,10,100 crore as on June 30, 2022 marking growth of 14 per cent. The first quarter saw deposits at Rs 3,47,047 crore, up 15 per cent from Rs 3,02,719 crore. CASA deposits, meanwhile, increased to Rs 1,38,440 crores with current account deposits at Rs 49,343 crore and savings account deposits at Rs 89,097 crore.
Further, the private sector bank stated that the loan book quality remained stable. “The Bank maintained a 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 of 21 per cent YoY and overall deposit growth of 15 per cent,” said Sumant Kathpalia, Managing Director & CEO, IndusInd Bank.
Gross NPA was at 1.94 per cent of gross advances as on June 30, 2023 as against 1.98 per cent as on March 31, 2023. Net NPA was 0.58 per cent of net advances as on June 30, 2023 as compared to 0.59 per cent as on March 31, 2023.
“The asset quality metrics too improved this quarter with lower fresh slippages and provisions YoY and QoQ. Overall, Q1 marks a healthy start to our PC-6 strategy and we remain committed to achieving our ambitions outlined in the plan,” he said.
IndusInd Bank’s reach
The private sector bank’s distribution network included 2606 branches/ banking outlets and 2875 onsite and offsite ATMs as of June 30, 2023. Meanwhile, as of June 30, 2022, it has a total of 2286 branches/ banking outlets and 2783 onsite and offsite ATMs. The client base stood at approximately 35 million.
Reacting to the quarter results, Gaurav Jani, Research Analyst, Prabhudas Lilladher, called it a ‘good quarter’ with a beat on all fronts. “NIM was a beat at 4.7 per cent driven by better loan yields at 12.87 per cent. Deposit growth was 14.6 per cent YoY. CASA was largely flat QoQ at ~40 per cent.”