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Indusind Bank has reported 64% growth in
net profit at Rs 1603.29 crore for the quarter ended June 2022 (Q1FY2023). The
bank has posted healthy 16% growth in net interest income (NII), while the core
fee income of the bank also improved 53% in Q1FY2023. The Net Interest Margin
(NIM) of the bank moved up to 4.21% in Q1FY2023 compared to 4.06% in the
corresponding quarter of previous year.
On
business front, the bank as has posted 15% growth in business with strong 18% surge
in loan book. The asset quality of the bank was stable in Q1FY2023. Bank has
substantially improved the credit to deposit ratio to 81.9% at end June 2022
from 78.9% at end June 2021. Further, the CASA ratio of the bank has also moved
up to 43.1% at end June 2022 from 42.0% at end June 2021.
Asset
quality stable: The bank has maintained stable asset quality, but witnessed
elevated fresh slippages of loans in Q1FY2023.
The fresh
slippages of loans stood at Rs 2250 crore in Q1FY2023 compared with 2088 crore
in previous quarter and Rs 2762 crore in the corresponding quarter last year.
The
recoveries of loans was at Rs 241 crore, upgradations of NPAs stood at Rs 363 crore
and the write-off of loans was at Rs 1230 crore in Q1FY2023.
The
standard restructured loan book of the bank declined to Rs 5207.16 crore end
June 2022.
Provision
coverage ratio was steady at 72.00% at end June 2022 compared to 72.00% a
quarter ago and 75.00% a year ago.
The
capital adequacy ratio of the bank stood at 18.4% with Tier I ratio at 16.6% at
end June 2022.
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Asset Quality Indicators: Indusind Bank
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Jun-22
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Mar-22
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Dec-21
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Sep-21
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Jun-21
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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5932.90
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5517.15
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5779.27
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6245.04
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6185.76
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8
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-4
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Net NPA (Rs Crore)
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1661.21
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1529.83
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1633.21
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1771.35
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1759.59
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9
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-6
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% Gross NPA
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2.35
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2.27
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2.48
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2.77
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2.88
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8
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-53
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% Net NPA
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0.67
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0.64
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0.71
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0.80
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0.84
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3
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-17
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% PCR
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72.00
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72.00
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72.00
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72.00
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75.00
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0
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-300
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% CRAR - Basel III
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18.41
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18.42
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18.06
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17.37
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17.57
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-1
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84
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% CRAR - Tier I - Basel III
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16.55
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16.80
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16.37
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16.68
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16.87
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-25
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-32
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Variation in basis points for figures given in percentages and
in % for figures in Rs crore
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Business
Highlights:
Healthy
business growth: The business of the bank has increased at improved pace of 15% YoY
to Rs 550679 crore end June 2022, driven by 18% surge in advances to Rs 247960 crore.
Deposits moved up 13% to Rs 302719 crore at end June 2022.
CASA
deposits ratio rises: The CASA deposits of the bank increased 16% YoY
to Rs 130508 crore at end June 2022. The CASA ratio improved to 43.1% at end
June 2022 compared to 42.0% at end June 2021, while also moved up from 42.7% a
quarter ago.
Strong
loan growth: Advances growth was driven by retail consumer loans rising 12% YoY
to Rs 133531 crore at end June 2022, while credit to MSME gained 9% to Rs 52107
crore at end June 2022. The corporate credit has jumped 40% to Rs 62322 crore
end June 2022.
Investment book of the
bank rose 6% YoY to Rs 72487 crore at end June 2022.
Margins
improve: The bank has showed 18 bps YoY decline in cost of deposits to 4.79%,
while cost of funds dipped 39 bps to 4.14%. The yield on advances declined 36 bps
YoY to 11.39% in Q1FY2023. The NIM has improved 15 bps YoY to 4.21%.
Branch
expansion: The bank has added 21 branches and 16 ATMs in Q1FY2023, taking
overall tally to 2286 branches and 2783 ATM`s end June 2022.
Book
value of the bank stood at Rs 609.8 per share at end June 2022, while
the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 581.6
per share at end June 2022.
Quarterly
Performance
NII rises
on strong loan growth and better NIMs: Bank has recorded 8% increase in
the interest earned at Rs 8181.77 crore, while interest expenses rose 1% to Rs 4056.51
crore in Q1FY2023. NII improved 16% to Rs 4125.26 crore in the quarter ended
June 2022.
Healthy
growth in the core fee income: Bank has posted strong 53% growth
in core fee income to Rs 1566 crore, while the forex income improved 15% to Rs 220
crore. However, the treasury income declined -71% to Rs 146 crore. The overall
non-interest income improved 12% to Rs 1928.70 crore in the quarter ended June
2022.
Expenses
ratio up: The operating expenses of the bank increased 20% to Rs 2660.29 crore,
as other expenses moved up 25% to Rs 1999.92 crore, while employee expenses increased
9% to Rs 660.37 crore in Q1FY2023. Cost to income ratio rose to 43.9% in
Q1FY2023 compared with 41.9% in Q1FY2022, helping the Operating Profit to
increase 11% to Rs 3393.67 crore.
Provisions
and contingencies decline: The bank has showed -30% decline in
provisions to Rs 1250.99 crore.
Effective
tax rate rose to 25.2% in
Q1FY2023 from 24.2% in Q1FY2022. Net Profit jumped 64% YoY to Rs 1603.29 crore
during quarter ended June 2022.
Financial
Performance FY2022:
Bank has
posted 63% increase in net profit to Rs 4611.12 crore in the year ended March 2022
(FY2022). The net interest income increased 11% to Rs 15000.84 crore, while
non-interest income moved up 13% to Rs 7397.05 crore, pushing up net total
income by 12% to Rs 22397.89 crore in FY2022. The operating expenses increased 14%
to Rs 9559.29 crore, while provision and contingencies declined -16% to Rs 6664.95
crore, allowing profit before tax to increase 63% to Rs 6173.65 crore in
FY2022. The cost-to-income ratio rose to 42.7% in FY2022 compared to 41.6% in
FY2021. An effective tax rate was steady at 25.3% in FY2022 compared to 25.0% in
FY2021. The net profit has increased 63% to Rs 4611.12 crore in FY2022.
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Indusind Bank: Results
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Particulars
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2206
(3)
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2106
(3)
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Var %
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2203
(12)
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2103
(12)
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Var %
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Interest Earned
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8181.77
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7574.70
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8
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30822.44
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28999.80
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6
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Interest Expended
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4056.51
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4010.99
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1
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15821.60
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15471.91
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2
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Net Interest Income
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4125.26
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3563.71
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16
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15000.84
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13527.89
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11
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Other Income
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1928.70
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1716.38
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12
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7397.05
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6558.61
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13
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Net Total Income
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6053.96
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5280.09
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15
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22397.89
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20086.50
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12
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Operating Expenses
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2660.29
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2214.22
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20
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9559.29
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8359.83
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14
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Operating Profits
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3393.67
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3065.87
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11
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12838.60
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11726.67
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9
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Provisions & Contingencies
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1250.99
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1779.33
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-30
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6664.95
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7942.53
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-16
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Profit Before Tax
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2142.68
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1286.54
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67
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6173.65
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3784.14
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63
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Provision for tax
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539.39
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311.59
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73
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1562.53
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947.75
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65
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PAT
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1603.29
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974.95
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64
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4611.12
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2836.39
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63
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EPS*(Rs)
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82.7
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50.3
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59.5
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36.6
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Adj BV (Rs)
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581.6
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541.5
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563.7
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533.8
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* Annualized on current equity of Rs 775.10 crore. Face
Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate Database
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