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Indusind Bank has reported 69% growth in
net profit at Rs 1959.20 crore for the quarter ended December 2022 (Q3FY2023). The
bank has posted healthy 18% growth in net interest income (NII), while the core
fee income of the bank also improved 31% in Q3FY2023. The Net Interest Margin
(NIM) of the bank improved to 4.27% in Q3FY2023 compared to 4.10% in the
corresponding quarter of previous year.
On
business front, the bank as has posted 17% growth in business with strong 19%
increase in loan book. The asset quality of the bank was stable in Q3FY2023.
Bank has substantially improved the credit to deposit ratio to 83.9% at end
December 2022 from 80.4% at end December 2021. The CASA ratio of the bank was
also stable at 41.9% at end December 2022 from 42.1% at end December 2021.
Asset
quality improves: The bank has improved asset quality with decline in fresh
slippages of loans in Q3FY2023.
The fresh
slippages of loans stood at Rs 1467 crore in Q3FY2023 compared with 1572 crore
in previous quarter and Rs 2598 crore in the corresponding quarter last year.
The
recoveries of NPAs stood at Rs 353 crore, upgradations at Rs 175 crore and the
write-off of loans was at Rs 795 crore in Q3FY2023.
The standard
restructured loan book of the bank declined to Rs 3409 crore end December 2022.
Provision
coverage ratio eased slightly to 71% at end December 2022 compared to 72% a
quarter ago and 72% a year ago.
The
capital adequacy ratio of the bank stood at 18.0% with Tier I ratio at 16.5% at
end December 2022.
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Asset Quality Indicators: Indusind Bank
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|
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Dec-22
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Sep-22
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Jun-22
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Mar-22
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Dec-21
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Variation
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QoQ
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YTD
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YoY
|
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Gross NPA (Rs Crore)
|
5710.78
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5567.12
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5932.90
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5517.15
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5779.27
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3
|
4
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-1
|
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Net NPA (Rs Crore)
|
1681.45
|
1583.95
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1661.21
|
1529.83
|
1633.21
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6
|
10
|
3
|
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% Gross NPA
|
2.06
|
2.11
|
2.35
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2.27
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2.48
|
-5
|
-21
|
-42
|
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% Net NPA
|
0.62
|
0.61
|
0.67
|
0.64
|
0.71
|
1
|
-2
|
-9
|
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% PCR
|
71.00
|
72.00
|
72.00
|
72.00
|
72.00
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-100
|
-100
|
-100
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% CRAR - Basel III
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18.01
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18.01
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18.14
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18.42
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18.06
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0
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-41
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-5
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% CRAR - Tier I - Basel III
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16.47
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16.44
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16.55
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16.80
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16.37
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3
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-33
|
10
|
|
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 17% YoY to Rs 598032 crore
end December 2022, driven by 19% surge in advances to Rs 272754 crore. Deposits
increased 14% to Rs 325278 crore at end December 2022.
CASA
deposits ratio stable: The CASA deposits of the bank increased 14% YoY
to Rs 136379 crore at end December 2022. The CASA ratio was nearly stable at 41.9%
at end December 2022 compared to 42.1% at end December 2021, and 42.3% end
September 2022 against the declining industry trend.
Strong
loan growth: Advances growth was driven by retail loans rising 18% YoY to Rs 145744
crore at end December 2022, while MSME loan moved up 8% to Rs 55957 crore at
end December 2022. The corporate credit has surged 32% to Rs 71053 crore end
December 2022.
Investment book of the
bank rose 5% YoY to Rs 76174 crore at end December 2022.
Margins
improve: The bank has showed sharp 81 bps YoY increase in cost of deposits
to 5.47%, while yield on advances increased 39 bps YoY to 11.75% in Q3FY2023. NIM
has improved 17 bps YoY and 3 bps QoQ to 4.27% in Q3FY2023.
Branch expansion:
The bank has added 64 branches and 87 ATMs in Q3FY2023, taking
overall tally to 2384 branches and 2894 ATM`s end December 2022.
Book
value of the bank stood at Rs 678.4 per share at end December 2022,
while the adjusted book value (net of NNPA and 10% of restructured advances)
was Rs 652.0 per share at end December 2022.
Quarterly
Performance
NII rises
as NIM improves: Bank has recorded 22% increase in the interest earned at Rs 9457.40
crore, while interest expenses increased 26% to Rs 4962.06 crore in Q3FY2023. NII
improved 18% to Rs 4495.34 crore in the quarter ended December 2022.
Healthy
growth in the core fee income: Bank has posted strong 31% growth
in core fee income to Rs 1692 crore, while forex income rose 9% to Rs 249 crore.
However, the treasury income declined -62% to Rs 136 crore, allowing moderate 11%
growth in the overall non-interest income to Rs 2076.34 crore in the quarter
ended December 2022.
Expenses
ratio up marginally: The operating expenses of the bank increased 17% to Rs 2891.30 crore,
as other expenses moved up 13% to Rs 2092.12 crore, while employee expenses jumped
29% to Rs 799.18 crore in Q3FY2023. Cost to income ratio rose marginally to 44.0%
in Q3FY2023 compared with 43.5% in Q3FY2022, helping the Operating Profit to
increase 15% to Rs 3680.38 crore.
Provisions
and contingencies decline: The bank has showed -36% decline in
provisions to Rs 1064.73 crore.
Effective
tax rate was flat at 25.1% in
Q3FY2023 from 25.1% in Q3FY2022. Net Profit rose by 69% YoY to Rs 1959.20 crore
during quarter ended December 2022.
Financial
Performance 9MFY2023:
Bank has
posted 65% increase in net profit to Rs 5349.21 crore in the nine months ended
December 2022 (9MFY2023). The net interest income increased 17% to Rs 12922.65 crore,
while non-interest income moved up 9% to Rs 6015.86 crore, pushing up net total
income by 15% to Rs 18938.51 crore in 9MFY2023. The operating expenses
increased 19% to Rs 8344.80 crore, while provision and contingencies dipped -34%
to Rs 3456.78 crore, allowing profit before tax to increase 66% to Rs 7136.93 crore
in 9MFY2023. The cost-to-income ratio increased to 44.1% in 9MFY2023 compared
to 42.4% in 9MFY2022. An effective tax rate rose slightly to 25.0% in 9MFY2023
compared to 24.6% in 9MFY2022. The net profit has increased 65% to Rs 5349.21 crore
in 9MFY2023.
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Indusind Bank: Results
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Particulars
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2212
(3)
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2112
(3)
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Var %
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2212
(9)
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2112
(9)
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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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9457.40
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7737.49
|
22
|
26347.20
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22962.55
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15
|
30822.44
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28999.80
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6
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Interest Expended
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4962.06
|
3943.92
|
26
|
13424.55
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11946.87
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12
|
15821.60
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15471.91
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2
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Net Interest Income
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4495.34
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3793.57
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18
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12922.65
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11015.68
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17
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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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2076.34
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1876.78
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11
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6015.86
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5495.05
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9
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7334.20
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6558.61
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12
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Net Total Income
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6571.68
|
5670.35
|
16
|
18938.51
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16510.73
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15
|
22335.04
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20086.50
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11
|
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Operating Expenses
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2891.30
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2465.28
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17
|
8344.80
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7000.64
|
19
|
9559.29
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8359.83
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14
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Operating Profits
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3680.38
|
3205.07
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15
|
10593.71
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9510.09
|
11
|
12775.75
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11726.67
|
9
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Provisions & Contingencies
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1064.73
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1654.05
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-36
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3456.78
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5201.43
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-34
|
6602.10
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7942.53
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-17
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Profit Before Tax
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2615.65
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1551.02
|
69
|
7136.93
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4308.66
|
66
|
6173.65
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3784.14
|
63
|
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Provision for tax
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656.45
|
389.75
|
68
|
1787.72
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1058.91
|
69
|
1562.53
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947.75
|
65
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PAT
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1959.20
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1161.27
|
69
|
5349.21
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3249.75
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65
|
4611.12
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2836.39
|
63
|
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EPS*(Rs)
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101.1
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59.9
|
|
92.0
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55.9
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|
59.5
|
36.6
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Adj BV (Rs)
|
652.0
|
566.8
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|
652.0
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566.8
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|
563.7
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533.8
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* Annualized on current equity of Rs 775.42 crore. Face
Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate Database
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