|
IndusInd
Bank has recorded strong 36% growth in the net profit to Rs 1161.27 crore for
the quarter ended December 2021 (Q3FY2022). The bank has improved asset quality
and margins, while recorded stable growth in fee income and loan book. The net
interest margins (NIM) of the bank has further increased to 4.10% in Q3FY2022.
The non-interest income growth of the bank was strong, which is mainly driven
by jump in treasury income, while bank continued to post healthy growth in core
fee income. Bank has recorded strong 10% growth in the loan book. Bank has expanded
network strength adding new 88 branches in Q3FY2022, raising the branch count
to 2103 at end December 2021.
Asset quality improves:
Bank has improved asset quality in Q3FY2022. The fresh slippages of advances declined
in Q3FY2022, while improved recoveries and upgradations helping to reduce NPAs.
The restructured advance book of the bank was steady in Q3FY2022.
· Fresh
slippages for the quarter ended December 2021 were Rs 2598 crore, while the
deductions stood at Rs 3064 crore.
· Gross
NPA ratio in the corporate book dipped to 2.15%, while in the retail loan book
GNPA eased to 2.86% end December 2021 from 2.55% and 3.06% a quarter ago.
· Restructured
advances book of the bank was steady on sequential basis at 3.60% of the
advances during the quarter under review.
· Provision
coverage ratio was steady on sequential basis to 72.0% at end December 2021
from 72.0% a quarter ago.
· Capital
adequacy ratio in Q3FY2022 stood at 18.1%.
|
Asset Quality Indicators: Indusind Bank
|
|
|
Dec-21
|
Sep-21
|
Jun-21
|
Mar-21
|
Dec-20
|
Variation
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
5779.27
|
6245.04
|
6185.76
|
5794.99
|
3650.66
|
-7
|
0
|
58
|
|
Net NPA (Rs Crore)
|
1633.21
|
1771.35
|
1759.59
|
1476.57
|
464.21
|
-8
|
11
|
252
|
|
% Gross NPA
|
2.48
|
2.77
|
2.88
|
2.67
|
1.74
|
-29
|
-7
|
74
|
|
% Net NPA
|
0.71
|
0.80
|
0.84
|
0.69
|
0.22
|
-9
|
3
|
49
|
|
% Provision Coverage Ratio
|
72.00
|
72.00
|
72.00
|
75.00
|
87.00
|
0
|
-4
|
-1500
|
|
% CRAR - Basel III
|
18.06
|
17.37
|
17.57
|
17.38
|
16.34
|
69
|
4
|
172
|
|
% CRAR - Basel III - Tier I
|
16.37
|
16.68
|
16.87
|
16.83
|
15.62
|
-31
|
-3
|
75
|
|
Variation in basis points for figures given in percentages
and % for Rs crore
|
Business
Highlights:
Loan growth stable:
Business of the bank increased 15% to Rs 513067 crore at end December 2021. The
advances book rose 10% to Rs 228583 crore, while deposits increased 19% to Rs 284484
crore at end December 2021.
Retail
loan book expanded 4% at Rs 123102 crore end December 2021. Meanwhile, the
corporate loan book jumped 19% at Rs 105481 crore at end December 2021. The
retail:corporate mix of the advances book of the bank stood at 53.9 : 46.1 at
end December 2021 compared with 55.1 : 44.9 a quarter ago.
Within
the retail book, the car loans rose 5% and tractors 24% at end December 2021. Further,
within the retail segment, the personal loans - homes loans continued to record
healthy growth at 15% and credit cards rose 1%. However, the auto loans segment
declined -1%, two wheelers loans -22% commercial vehicle loan segment -5%, loan
against property -7% at end December 2021 over December 2020.
Within
the corporate book, the large corporate loans grew 29%, while loans to mid-sized
corporate moved up 9% and small corporate 18% at end December 2021.
CASA ratio steady: CA
deposits increased 3% to Rs 33279 crore, while SA deposits galloped 35% to Rs 86615
crore at end December 2021. CASA deposits constituted 42.1% of the total
deposits in quarter under review against 40.4% a year ago.
NIM jumps:
Bank has witnessed sharp 3 bps surge in the NIM on qoq basis to 4.10% in
Q3FY2022 from 4.07% in Q3FY2022. Bank exhibited -8 bps qoq decline in yield on
assets to 8.36%, while cost of funds dipped -11 bps qoq to 4.26% helping to
boost NIMs.
Network expansion:
Bank has added 88 branches in the quarter ended December 2021 taking the branch
count to 2103 branches at end December 2021. Bank has reduced -25 ATMs in
Q3FY2022 reducing the ATMs strength to 2861 ATMs at end December 2021.
Book value
stood at Rs 565.87 per share, while adjusted book value (adjusted for NNPA and
10% of restructured assets) stood at Rs 534.16 per share at end December 2021.
Quarterly
Performance:
NII rise with increase growth:
Bank has reported 7% increase in the interest earned at Rs 7737.49 crore, while
interest expenses rose mere 3% to Rs 3943.92 crore in Q3FY2022. Net Interest
Income (NII) increased 11% to Rs 3793.57 crore in the quarter ended December
2021.
Healthy core fee income growth, treasury
income spurts: The non-interest income of the bank increased 10% to Rs 1876.78
crore. The core fee income continued to increase at 9% to Rs 1519 crore, while
trading income jumped 39% to Rs 358 crore in Q3FY2022. Within the core fee
components, the investment banking income jumped 19% to Rs 94 crore and loan processing
fees 27% to Rs 382 crore. The distribution fees improved 5% to Rs 388 crore, while
general banking fee rose 27% to Rs 239 crore and trade and remittance income 3%
to Rs 188 crore. However, the forex income declined -15% to Rs 228 crore in
Q3FY2022.
The
Net total income increased 11%, yoy, to Rs 5670.35 crore during the quarter
ended December 2021.
Expense ratio stable: The
employee cost increased 14% to Rs 620.02 crore, while the other operating
expenses moved up 16% to Rs 1845.26 crore, pushing up the operating expenses by
15% to Rs 2465.28 crore. The expense ratio was stable at 41.6% in Q3FY2022
compared with 41.3% in Q3FY2022, allowing the operating profit to surge 8% to
Rs 3205.07 crore.
Provisions declines: The
provisions and contingencies declined -11% to Rs 1654.05 crore compared to Rs 1853.52
crore in Q3FY2022.
The
tax rate rose to 25.1% in Q3FY2022 compared with 23.8% in Q3FY2021. Net profit improved
36% to Rs 1161.27 crore in the quarter ended December 2021.
Financial
Performance 9MFY2022:
For
the year ended December 2021 (9MFY2022), the bank has posted healthy 66% increase
in net profit to Rs 3249.75 crore. The net interest income improved 10% to Rs 11015.68
crore, while non-interest income advanced 15% to Rs 5495.05 crore in 9MFY2022. The
operating expenses increased 15% to Rs 7000.64 crore, while provision and
contingencies declined -14% to Rs 5201.43 crore. The expense ratio rose 106 bps
to 42.4% in 9MFY2022 compared to 41.3% in 9MFY2021. The profit before tax
improved 66% to Rs 4308.66 crore in 9MFY2022. After considering 24.6% of
effective tax rate, the net profit increased 66% to Rs 3249.75 crore in
9MFY2022.
|
Indusind Bank: Results
|
|
Particulars
|
2112
(3)
|
2012
(3)
|
Var
%
|
2112
(9)
|
2012
(9)
|
Var
%
|
2103
(12)
|
2003
(12)
|
Var
%
|
|
Interest Earned
|
7737.49
|
7241.50
|
7
|
22962.55
|
21580.44
|
6
|
28999.80
|
28782.83
|
1
|
|
Interest Expended
|
3943.92
|
3835.40
|
3
|
11946.87
|
11587.16
|
3
|
15471.91
|
16724.09
|
-7
|
|
Net Interest Income
|
3793.57
|
3406.10
|
11
|
11015.68
|
9993.28
|
10
|
13527.89
|
12058.74
|
12
|
|
Other Income
|
1876.78
|
1705.46
|
10
|
5495.05
|
4778.49
|
15
|
6558.61
|
6951.31
|
-6
|
|
Net Total Income
|
5670.35
|
5111.56
|
11
|
16510.73
|
14771.77
|
12
|
20086.50
|
19010.05
|
6
|
|
Operating Expenses
|
2465.28
|
2138.28
|
15
|
7000.64
|
6106.63
|
15
|
8359.83
|
8237.34
|
1
|
|
Operating Profits
|
3205.07
|
2973.28
|
8
|
9510.09
|
8665.14
|
10
|
11726.67
|
10772.71
|
9
|
|
Provisions & Contingencies
|
1654.05
|
1853.52
|
-11
|
5201.43
|
6076.84
|
-14
|
7942.53
|
4652.10
|
71
|
|
Profit Before Tax
|
1551.02
|
1119.76
|
39
|
4308.66
|
2588.30
|
66
|
3784.14
|
6120.61
|
-38
|
|
Provision for tax
|
389.75
|
267.00
|
46
|
1058.91
|
627.86
|
69
|
947.75
|
1702.70
|
-44
|
|
Net Profit
|
1161.27
|
852.76
|
36
|
3249.75
|
1960.44
|
66
|
2836.39
|
4417.91
|
-36
|
|
EPS*(Rs)
|
60.0
|
44.0
|
|
55.9
|
33.7
|
|
36.6
|
57.0
|
|
|
* Annualized on current equity of Rs 774.61 crore. Face
Value: Rs 10 per share, Figures in Rs crore
|
|
Source: Capitaline Corporate Database
|
|