IndusInd Bank Q2 profit up 72% on higher income, lower provisions

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October 28, 2021 6:00 AM

Restructured advances constituted 3.6% of the bank’s loan book. “If you look at our conservative simulation of credit costs from the restructured pool, I think we are well provided to take care of any provisions which will come from the restructured book,” Kathpalia said.

Provisions were down 13% YoY to Rs 1,703 crore. The management attributed the jump in profit to NII and fee growth.Provisions were down 13% YoY to Rs 1,703 crore. The management attributed the jump in profit to NII and fee growth.

IndusInd Bank’s net profit rose 72% year on year (YoY) to Rs 1,113.53 crore in the September quarter on the back of higher income and lower provisions.

The bank’s net interest income (NII) increased 11.6% YoY to Rs 3,658 crore, other income was up 18% to Rs 1,837 crore and the net interest margin (NIM) rose one basis point (bps) sequentially to 4.07%. Provisions were down 13% YoY to Rs 1,703 crore. The management attributed the jump in profit to NII and fee growth.

Managing director and CEO Sumant Kathpalia said Q2 witnessed an acceleration in growth momentum. “The strong disbursements in the retail segment, coupled with reinvigorated corporate franchise, provides us comfort on continued loan growth and NII acceleration. The pre-provision operating margins have grown and if you look at our fee, we have grown across all fee vectors,” he said.

The advances book rose 9.72% on a y-o-y basis to Rs 2.21 lakh crore as on September 30, 2021, and total deposits rose 21% YoY to Rs 2.75 lakh crore. Current account savings account (CASA) deposits comprised 42% of total deposits as on September 30, 2021, up from 40% a year ago.

Restructured advances constituted 3.6% of the bank’s loan book. “If you look at our conservative simulation of credit costs from the restructured pool, I think we are well provided to take care of any provisions which will come from the restructured book,” Kathpalia said.

Slippages were to the tune of Rs 2,658 crore in Q2FY22, down from Rs 2,762 crore in the previous quarter. The bank made recoveries worth Rs 1,024 crore and upgrades worth Rs 1,141 crore during the quarter. Gross non-performing assets (GNPAs) stood at 2.77% of advances as on September 30, 2021, down from 2.88% as on June 30, 2021. The net NPA ratio stood at 0.8% as on September 30, 2021, down from 0.84% on June 30, 2021.

IndusInd Bank’s shares closed at Rs 1,141.85 on Wednesday on the BSE, down 1.11% from their previous close. The results were declared after the close of trade.

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