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Indusind Bank has
reported 50% growth in net profit at Rs 2040.51 crore for the quarter ended
March 2023 (Q4FY2023). The bank has posted 17% growth in net interest income
(NII), while the core fee income of the bank also improved 29% in Q4FY2023. The
Net Interest Margin (NIM) of the bank improved to 4.28% in Q4FY2023 compared to
4.20% in the corresponding quarter of previous year.
On
business front, the bank as has posted 18% growth in business with strong 21%
surge in loan book. The asset quality of the bank was stable in Q4FY2023. Bank
has substantially improved the credit to deposit ratio to 86.2% at end March
2023 from 81.4% at end March 2022. However, the CASA ratio of the bank has
declined to 40.0% at end March 2023 from 42.7% at end March 2022.
Asset
quality improves: The bank has witnessed increase in fresh slippages of loans, but
improved asset quality in percentage terms in Q4FY2023.
The fresh
slippages of loans stood at Rs 1603 crore in Q4FY2023 compared with 1467 crore
in previous quarter and Rs 2088 crore in the corresponding quarter last year.
The
recoveries of NPAs stood at Rs 690 crore, upgradations at Rs 228 crore and the
write-off of loans was at Rs 569 crore in Q4FY2023.
The
standard restructured loan book of the bank declined to Rs 2435 crore end March
2023.
Provision
coverage ratio was steady at 71.00% at end March 2023 compared to 71.00% a
quarter ago and 72.00% a year ago.
The
capital adequacy ratio of the bank stood at 17.9% with Tier I ratio at 16.4% at
end March 2023.
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Asset Quality Indicators: Indusind Bank
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Mar-23
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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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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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5826.27
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5710.78
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5567.12
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5932.90
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5517.15
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2
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6
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Net NPA (Rs Crore)
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1714.96
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1681.45
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1583.95
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1661.21
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1529.83
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2
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12
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% Gross NPA
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1.98
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2.06
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2.11
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2.35
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2.27
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-8
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-29
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% Net NPA
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0.59
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0.62
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0.61
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0.67
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0.64
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-3
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-5
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% PCR
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71.00
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71.00
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72.00
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72.00
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72.00
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0
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-100
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% CRAR - Basel III
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17.86
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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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-15
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-56
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% CRAR - Tier I - Basel III
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16.37
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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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-10
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-43
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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 18% YoY to Rs 626362 crore
end March 2023, driven by 21% surge in advances to Rs 289924 crore. Deposits
rose 15% to Rs 336438 crore at end March 2023.
CASA
deposits ratio declines: The CASA deposits of the bank rose 7% YoY to
Rs 134728 crore at end March 2023. The CASA ratio declined to 40.0% at end
March 2023 compared to 42.7% at end March 2022, while declined from 41.9% a
quarter ago.
Strong
loan growth: Advances growth was driven by retail loans rising 20% YoY to Rs
155774 crore at end March 2023, while credit to MSME increased 21% to Rs 59810
crore at end March 2023. The corporate credit has surged 23% to Rs 74340 crore
end March 2023.
Investment
book of the bank galloped 17% YoY to Rs 83116 crore at end March 2023.
Margins
improve: The bank has showed sharp 121 bps YoY jump in cost of deposits to
5.81%, while yield on advances moved up 73 bps YoY to 12.02% in Q4FY2023. NIM
has improved 8 bps YoY to 4.28% in Q4FY2023.
Branch
expansion: The bank has added 222 branches and reduced 16 ATMs in Q4FY2023,
taking overall tally to 2606 branches and 2878 ATM`s end March 2023.
Book
value of the bank stood at Rs 700.1 per share at end March 2023, while
the adjusted book value (net of NNPA and 10% of restructured advances) was Rs
674.8 per share at end March 2023.
Quarterly
Performance
NII rises
as NIM improves: Bank has recorded 27% increase in the interest earned at Rs
10020.71 crore, while interest expenses increased 38% to Rs 5351.25 crore in
Q4FY2023. NII improved 17% to Rs 4669.46 crore in the quarter ended March 2023.
Healthy
growth in the core fee income: Bank has posted strong 29% growth
in core fee income to Rs 1818 crore, while the forex income rose 15% to Rs 269
crore. However, the treasury income declined 74% to Rs 67 crore. The overall
non-interest income rose 13% to Rs 2150.51 crore in the quarter ended March
2023.
Expenses
ratio jump: The operating expenses of the bank increased 20% to Rs 3067.20
crore, as other expenses moved up 17% to Rs 2230.95 crore, while employee
expenses also jumped 27% to Rs 836.25 crore in Q4FY2023. Cost to income ratio
was nearly stable at 45.0% in Q4FY2023 compared with 43.5% in Q4FY2022. Operating
Profit increased 13% to Rs 3752.77 crore.
Provisions
and contingencies decline: The bank has showed 30% decline in provisions
to Rs 1030.05 crore.
Effective
tax rate declined to 25.1% in Q4FY2023 from 27.0% in Q4FY2022. Net Profit rose by 50%
YoY to Rs 2040.51 crore during quarter ended March 2023.
Financial
Performance FY2023:
Bank has
posted 60% increase in net profit to Rs 7389.72 crore in the nine months ended
March 2023 (FY2023). The net interest income increased 17% to Rs 17592.11
crore, while non-interest income moved up 11% to Rs 8166.37 crore, pushing up
net total income by 15% to Rs 25758.48 crore in FY2023. The operating expenses
increased 19% to Rs 11412.00 crore, while provision and contingencies declined 32%
to Rs 4486.83 crore, allowing profit before tax to increase 60% to Rs 9859.65
crore in FY2023. The cost-to-income ratio deteriorated to 44.3% in FY2023
compared to 42.8% in FY2022. An effective tax rate eased to 25.1% in FY2023
compared to 25.3% in FY2022. The net profit has increased 60% to Rs 7389.72
crore in FY2023.
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Indusind
Bank: Results
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Particulars
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2303
(3)
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2203
(3)
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Var %
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2303
(12)
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2203
(12)
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Var %
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Interest Earned
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10020.71
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7859.89
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27
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36367.91
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30822.44
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18
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Interest Expended
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5351.25
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3874.73
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38
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18775.80
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15821.60
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19
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Net Interest Income
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4669.46
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3985.16
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17
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17592.11
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15000.84
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17
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Other Income
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2150.51
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1900.10
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13
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8166.37
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7334.20
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11
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Net Total Income
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6819.97
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5885.26
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16
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25758.48
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22335.04
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15
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Operating Expenses
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3067.20
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2558.65
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20
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11412.00
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9559.29
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19
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Operating Profits
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3752.77
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3326.61
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13
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14346.48
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12775.75
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12
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Provisions & Contingencies
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1030.05
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1461.62
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-30
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4486.83
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6602.10
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-32
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Profit Before Tax
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2722.72
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1864.99
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46
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9859.65
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6173.65
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60
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Provision for tax
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682.21
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503.62
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35
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2469.93
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1562.53
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58
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PAT
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2040.51
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1361.37
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50
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7389.72
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4611.12
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60
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EPS*(Rs)
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105.2
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70.2
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95.2
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59.4
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Adj BV (Rs)
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674.8
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584.0
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674.8
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584.0
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*
Annualized on current equity of Rs 775.9 crore. Face Value: Rs 10, Figures in
Rs crore
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Source:
Capitaline Corporate Database
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