IndusInd Bank Net Interest Income Grows By 18% YoY To ₹4,867 Cr In Q1FY24

Operating expenses for the quarter ended June 30, 2023 were ₹3,245 crores as against ₹2,626 crores for the corresponding quarter of previous year, increased by 24%.The Board of Directors of IndusInd Bank Limited approved the financial results of the Bank for the Quarter ended June 30, 2023, at their meeting held in Mumbai on Tuesday, July 18, 2023, the company announced through an exchange filing.

NIM at 4.29%, Net NPA at 0.58%, Provision Coverage Ratio at 71%, Capital Adequacy Ratio (CRAR) at 18.40%, CASA at 40% and Liquidity Coverage Ratio at 132% underscore the strength of operating performance of the Bank and adequacy of capital.

Consolidated Financial Results

The Bank’s financial results include the financial results of its wholly owned subsidiary, Bharat Financial Inclusion Limited (BFIL), a business correspondent (BC) of the Bank involved in originating small ticket MFI loans for the Bank and IndusInd Marketing and Financial Services Private Limited (IMFS), an associate of the Bank.

Profit & Loss Account for the Quarter ended June 30, 2023

Net Profit for the quarter ended June 30, 2023 was ₹2,124 crores as compared to ₹1,631 crores during corresponding quarter of previous year up by 30% YoY.

Pre Provision Operating Profit (PPOP) at ₹3,831 crores for the quarter ended June, 2023 registered a growth of 12% over the corresponding quarter of previous year at ₹3,431 crores. PPOP/Average Advances ratio for the quarter ended June 30, 2023 at 5.5%.

Net Interest Income for the quarter June 30, 2023 at ₹4,867 crores, grew by 18% YoY and 4% QoQ. Net Interest Margin for Q1 of FY24 stood at 4.29% against 4.21% for Q1 of FY 23 and 4.28% for Q4 of FY23.

Yield on Assets stands at 9.60% for the quarter ended June 30, 2023 as against 8.35% for the corresponding quarter of previous year. Cost of Fund stands at 5.31% as against 4.14% for corresponding quarter of previous year.

Other income at ₹2,210 crores for the quarter ended June 30,2023 as against ₹1,932 crores for the corresponding quarter of previous year, grew by 14% YoY. Core Fee grew by 19% YoY to ₹2,119 crores as against ₹1,786 crores for the corresponding quarter of previous year.

Balance Sheet as of June, 2023

Balance sheet footage as on June 30, 2023 was ₹4,66,993 crores as against ₹4,10,100 crores as on June 30, 2022 marking growth of 14%.

Deposits as on June 30, 2023 were ₹3,47,047 crores as against ₹3,02,719 crores, an increase of 15% over June 30, 2022.CASA deposits increased to ₹1,38,440 crores with Current Account deposits at ₹49,343 crores and Savings Account deposits at ₹89,097 crores. CASA deposits comprised 40% of total deposits as at June 30, 2023.

Advances as of June 30, 2023 were ₹3,01,317 crores as against ₹2,47,960 crores, an increase of 22% as compared to June 30, 2022.

Asset Quality

The loan book quality remains stable. Gross NPA were at 1.94% of gross advances as on June 30, 2023 as against 1.98% as on March 31, 2023. Net NPA were 0.58% of net advances as on June 30, 2023 as compared to 0.59% as on March 31, 2023.

The Provision Coverage Ratio was consistent at 71% as at June 30, 2023. Provisions and contingencies for the quarter ended June 30, 2023 were ₹991 crores as compared to ₹1,251 crores for the corresponding quarter of previous year, reduced by 21% YoY. Total loan related provisions as on June 30, 2023 were at ₹7,239 crores (2.4% of loan book).

Capital Adequacy

The Bank’s Total Capital Adequacy Ratio as per Basel III guidelines stands at 18.40% as on June 30, 2023, as compared to 18.14% as on June 30, 2022. Tier 1 CRAR was at 16.44% as on June 30, 2023 compared to 16.06% as on June 30, 2022. Risk-Weighted Assets were at ₹3,34,370 crores as against ₹3,03,188 crores a year ago.

Network

As of June 30, 2023, the Bank’s distribution network included 2606 branches/ Banking outlets and 2875 onsite and offsite ATMs, as against 2286 branches/banking outlets and 2783 onsite and offsite ATMs, as of June 30, 2022. The client base stood at approx. 35 million as on June30, 2023.

Sumant Kathpalia, Managing Director & CEO, IndusInd Bank said: "The quarter witnessed economic activity in the country gaining momentum as is visible from various high frequency indicators. India remains a bright spot and the relative attractiveness was reflected in healthy foreign investment inflows during the quarter. The Bank too began executing on its next 3-year plan (PC-6) starting Q1 focused on Growth, Granularity and Governance. The Bank maintained healthy loan growth rate of 22% YoY driven by both consumer and corporate segments.