IndusInd Bank’s net profit rose 61% year-on-year (y-o-y) to Rs 1,631 crore in the April-June quarter on the back of lower provisions and higher income.
Provisions were down 30% y-o-y at Rs 1,251 crore. The bank’s net interest income (NII) increased 16% y-o-y to Rs 4,125 crore, other income was up 12% at Rs 1,932 crore and the net interest margin (NIM) rose one basis point (bps) sequentially to 4.21%.
Sumant Kathpalia, managing director and CEO, IndusInd Bank, said that Q1FY23 witnessed a turbulent operating environment with interlinkages of inflation, reversal of accommodative monetary policy and the Russia-Ukraine conflict playing out. “The first quarter of a financial year is also a seasonally weak quarter for some businesses. The bank has nevertheless focussed on delivering on its strategic ambitions,” he said.
The advances book grew 18% on a y-o-y basis to Rs 2.48 trillion as on June 30, 2022 and deposits rose 13% y-o-y to Rs 3.03 trillion. Current account savings account (CASA) deposits comprised 43% of total deposits as on June 30, 2022.
Gross non-performing assets (NPAs) stood at 2.35% of advances as on March 31, 2022, up from 2.27% as on March 31, 2022. The net NPA ratio stood at 0.67%, up from 0.64% a quarter ago.
The bank’s capital adequacy ratio as per Basel III guidelines improved to 18.14% as on June 30, 2022, as compared to 17.57% as on June 30, 2021. The tier-1 ratio was at 16.55% as on June 30, 2022, down from 16.87% as on June 30, 2021.
IndusInd Bank’s shares closed at Rs 878.90 on Wednesday on the BSE, up 1.2% from their previous close. The results were declared after the close of trade.