|
IndusInd Bank has maintained the strong
profitability growth, while recording healthy 55% growth in the net profit to
Rs 1361.37 crore for the quarter ended March 2022 (Q4FY2022). The asset quality
improved with reduction in restructured loans, while bank has posted strong 10 bps
sequential improvement in the net interest margins (NIM) to 4.20% in Q4FY2022.
The non-interest income growth of the bank was stable, which is mainly driven
by 9% growth in the core fee income. Bank has recorded strong 12% growth in the
loan book. Bank has strongly expanded network strength adding new 162 branches
in Q4FY2022, raising the branch count to 2265 at end March 2022.
Asset
quality improves: Bank has improved asset
quality in Q4FY2022.
The fresh slippages of advances remained elevated
in Q4FY2022, but bank exhibited improved recoveries and upgradations helping to
maintain asset quality. The restructured advance book of the bank declined in
Q4FY2022.
· Fresh slippages for the quarter ended March
2022 were Rs 2088 crore, while the deductions stood at Rs 2350 crore.
· Gross NPA ratio in the corporate book declined
2.07%, while in the retail loan book GNPA also eased to 2.71% at end March 2022
from 2.15% and 2.86% a quarter ago.
· Restructured advances book of the bank declined
on sequential basis at 2.60% of the advances during the quarter under review from
3.30% a quarter ago.
· Provision coverage ratio was steady on sequential
basis to 72.0% at end March 2022 from 72.0% a quarter ago.
· Capital adequacy ratio in Q4FY2022 stood at 18.4%.
|
Asset Quality
Indicators: Indusind Bank
|
|
|
Mar-22
|
Dec-21
|
Sep-21
|
Jun-21
|
Mar-21
|
Variation
|
|
QoQ
|
YoY
|
|
Gross NPA (Rs Crore)
|
5517.15
|
5779.27
|
6245.04
|
6185.76
|
5794.99
|
-5
|
-5
|
|
Net NPA (Rs Crore)
|
1529.83
|
1633.21
|
1771.35
|
1759.59
|
1476.57
|
-6
|
4
|
|
% Gross NPA
|
2.27
|
2.48
|
2.77
|
2.88
|
2.67
|
-21
|
-40
|
|
% Net NPA
|
0.64
|
0.71
|
0.80
|
0.84
|
0.69
|
-7
|
-5
|
|
% Provision Coverage Ratio
|
72.00
|
72.00
|
72.00
|
72.00
|
75.00
|
0
|
-300
|
|
% CRAR - Basel III
|
18.42
|
18.06
|
17.37
|
17.57
|
17.38
|
36
|
104
|
|
% CRAR - Basel III -
Tier I
|
16.80
|
16.37
|
16.68
|
16.87
|
16.83
|
43
|
-3
|
|
Variation in basis
points for figures given in percentages and % for Rs crore
|
Business Highlights:
Loan
growth moderates: Business growth of
the bank eased marginally to 14% to Rs 532401 crore at end March 2022. The
advances book rose 12% to Rs 239052 crore, while deposits increased 15% to Rs 293349
crore at end March 2022.
Retail loan book expanded at accelerated pace
of 7% at Rs 129588 crore end March 2022. Meanwhile, the corporate loan book jumped
20% at Rs 109463 crore at end March 2022. The retail:corporate mix of the
advances book of the bank stood at 54.2 : 45.8 at end March 2022 compared with 53.9
: 46.1 a quarter ago.
Within the retail book, the auto loans segment
grew 2%, as while car loans rose 6% and tractors 19%, while two wheelers loans declined
21% and commercial vehicle loan segment fell 2% in Q4FY2022.
Further, within the retail segment, the personal
loans - homes loans continued to record healthy growth at 26% at end March
2022. Credit cards also posted strong growth of 22%, while loan against
property declined 2% at end March 2022 over March 2021.
Within the corporate book, the large corporate
loans grew 42%, while small corporate book also increased 42% at end March
2022. However, loans to mid-sized corporate segment declined 5%.
CASA
ratio improves: CA deposits increased 2%
to Rs 36507 crore, while SA deposits galloped 25% to Rs 88826 crore at end
March 2022. CASA deposits constituted 42.7% of the total deposits in quarter
under review against 41.7% a year ago.
NIM
rises: Bank has witnessed
sharp 10 bps surge in the NIM on qoq basis to 4.20% in Q4FY2022 from 4.10% in Q3FY2022.
Bank exhibited 8 bps qoq decline in yield on assets to 8.28%, while cost of
funds dipped 18 bps qoq to 4.08% helping to boost NIMs.
Network
expansion: Bank has added 162 branches
in the quarter ended March 2022 taking the branch count to 2265 branches at end
March 2022. Bank has reduced 94 ATMs in Q4FY2022 cutting ATMs strength to 2767 ATMs
at end March 2022.
Book
value stood at Rs 591.48 per
share, while adjusted book value (adjusted for NNPA and 10% of restructured
assets) stood at Rs 563.71 per share at end March 2022.
Quarterly Performance:
NII
rises on strong NIMs and loan growth: Bank has reported 6% increase in the interest earned at Rs 7859.89
crore, while interest expenses was Rs 3874.73 crore in Q4FY2022. Net Interest
Income (NII) increased at accelerated pace of 13% to Rs 3985.16 crore in the
quarter ended March 2022.
Healthy
core fee income growth: The
non-interest income of the bank increased 7% to Rs 1902.00 crore. The core fee
income increased at healthy pace of 9% to Rs 1644 crore, while trading income declined
4% to Rs 261 crore in Q4FY2022.
Within the core fee components, the loan processing
fees increased 41% to Rs 504 crore, distribution fees improved 18% to Rs 470 crore,
while general banking fee rose 4% to Rs 209 crore. However, the trade and
remittance income declined 9% to Rs 199 crore, investment banking income 56% to
Rs 28 crore and forex income 13% to Rs 234 crore and in Q4FY2022.
The Net total income increased 11%, yoy, to Rs 5887.16
crore during the quarter ended March 2022.
Expense
ratio rises: The employee cost
increased 11% to Rs 658.52 crore, while the other operating expenses moved up 15%
to Rs 1900.13 crore, pushing up the operating expenses by 14% to Rs 2558.65 crore.
The expense ratio rose to 42.6% in Q4FY2022 compared with 41.1% in Q4FY2022, allowing
the operating profit to rise 9% to Rs 3328.51 crore.
Provisions
dip: The provisions and
contingencies declined 22% to Rs 1463.52 crore compared to Rs 1865.69 crore in
Q4FY2022. The credit cost eased to 49 bps in Q4FY2022 compared with 58 bps in Q3FY2022
and 122 bps in Q4FY2021.
The tax rate rose to 27.0% in Q4FY2022 compared
with 26.8% in Q4FY2022, allowing the net profit to improve 55% to Rs 1361.37 crore
in the quarter ended March 2022.
Financial Performance FY2022:
For the year ended March 2022 (FY2022), the bank
has posted healthy 63% increase in net profit to Rs 4611.12 crore. The net
interest income improved 11% to Rs 15000.84 crore, while non-interest income
advanced 13% to Rs 7397.05 crore in FY2022. The operating expenses increased 14%
to Rs 9559.29 crore, while provision and contingencies declined 16% to Rs 6664.95
crore. The expense ratio improved 106 bps to 42.7% in FY2022 compared to 41.6% in
FY2021. The profit before tax increased 63% to Rs 6173.65 crore in FY2022. After
considering 25.3% of effective tax rate, the net profit increased 63% to Rs 4611.12
crore in FY2022.
|
Indusind Bank: Results
|
|
Particulars
|
2203
(3)
|
2103
(3)
|
Var
%
|
2203
(12)
|
2103
(12)
|
Var
%
|
|
Interest Earned
|
7859.89
|
7419.36
|
6
|
30822.44
|
28999.80
|
6
|
|
Interest Expended
|
3874.73
|
3884.75
|
0
|
15821.60
|
15471.91
|
2
|
|
Net Interest Income
|
3985.16
|
3534.61
|
13
|
15000.84
|
13527.89
|
11
|
|
Other Income
|
1902.00
|
1780.12
|
7
|
7397.05
|
6558.61
|
13
|
|
Net Total Income
|
5887.16
|
5314.73
|
11
|
22397.89
|
20086.50
|
12
|
|
Operating Expenses
|
2558.65
|
2253.20
|
14
|
9559.29
|
8359.83
|
14
|
|
Operating Profits
|
3328.51
|
3061.53
|
9
|
12838.60
|
11726.67
|
9
|
|
Provisions & Contingencies
|
1463.52
|
1865.69
|
-22
|
6664.95
|
7942.53
|
-16
|
|
Profit Before Tax
|
1864.99
|
1195.84
|
56
|
6173.65
|
3784.14
|
63
|
|
Provision for tax
|
503.62
|
319.89
|
57
|
1562.53
|
947.75
|
65
|
|
Net Profit
|
1361.37
|
875.95
|
55
|
4611.12
|
2836.39
|
63
|
|
EPS*(Rs)
|
70.3
|
45.2
|
|
59.5
|
36.6
|
|
|
* Annualized on current equity of
Rs 774.68 crore. Face Value: Rs 10 per share, Figures in Rs crore
|
|
Source: Capitaline Corporate
Database
|
|