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Indusind Bank has
reported 22% growth in net profit at Rs 2181.47 crore for the quarter ended
September 2023 (Q2FY2024). The bank has posted healthy 18% growth in net
interest income (NII), while the core fee income of the bank also improved 18% in
Q2FY2024. The Net Interest Margin (NIM) of the bank improved to 4.29% in
Q2FY2024 compared to 4.24% in the corresponding quarter of previous year.
On business front, the
bank as has posted 17% growth in business with strong 21% surge in loan book. The
asset quality of the bank was stable in Q2FY2024. Bank has substantially
improved the credit to deposit ratio to 87.7% at end September 2023 from 82.3% at
end September 2022. The CASA ratio of the bank has eased to 39.3% at end
September 2023 from 42.3% at end September 2022.
Asset quality stable: The bank
has maintained stable asset quality in Q2FY2024.
The fresh slippages of
loans stood at Rs 1465 crore in Q2FY2024 compared with 1376 crore in previous
quarter and Rs 1572 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 218 crore, upgradations at Rs 225 crore and the write-off of loans
was at Rs 535 crore in Q2FY2024.
The standard restructured
loan book of the bank declined to Rs 1703 crore end September 2023.
Provision coverage ratio
was steady at 71% at end September 2023 compared to 71% a quarter ago and 72% a
year ago.
The capital adequacy ratio
of the bank stood at 18.2% with Tier I ratio at 16.8% at end September 2023.
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Asset Quality Indicators: Indusind Bank
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Sep/23
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Jun/23
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Mar/23
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Dec/22
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Sep/22
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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)
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6164.22
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5941.12
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5826.27
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5710.78
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5567.12
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4
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6
|
11
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Net NPA (Rs Crore)
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1813.76
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1746.93
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1714.96
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1681.45
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1583.95
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4
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6
|
15
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% Gross NPA
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1.93
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1.94
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1.98
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2.06
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2.11
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-1
|
-5
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-18
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% Net NPA
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0.57
|
0.58
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0.59
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0.62
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0.61
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-1
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-2
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-4
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% PCR
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71.00
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71.00
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71.00
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71.00
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72.00
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0
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0
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-100
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% CRAR - Basel III
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18.21
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18.40
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17.86
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18.01
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18.01
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-19
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35
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20
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% CRAR - Tier I - Basel III
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16.75
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16.89
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16.37
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16.47
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16.44
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-14
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38
|
31
|
|
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 675240 crore end September
2023, driven by 21% surge in advances to Rs 315454 crore. Deposits rose 14% to
Rs 359786 crore at end September 2023.
CASA deposits ratio eases:
The CASA deposits of the bank increased 6% YoY to Rs 141437 crore
at end September 2023. The current account deposits surged 40% to Rs 49910 crore,
while saving account deposits declined 6% to Rs 91527 crore end September 2023.
The CASA ratio eased to 39.3% at end September 2023 compared to 42.3% at end
September 2022, while declined from 39.9% a quarter ago. The term deposits have
increased 20% to Rs 218349 crore end September 2023.
Strong loan growth: Advances
growth was driven by retail loans rising 25% YoY to Rs 172300 crore at end
September 2023, while credit to MSME increased 20% to Rs 63921 crore at end
September 2023. The corporate credit has moved up 15% to Rs 79233 crore end
September 2023.
Investment book of the bank jumped 24% YoY to Rs
94468 crore at end September 2023.
Margins improve: The bank
has showed 125 bps YoY jump in cost of deposits to 6.35%, while yield on
advances increased 79 bps YoY to 12.30% in Q2FY2024. NIM has improved 5 bps YoY
to 4.29%.
Branch expansion: The bank
has added 25 branches and 28 ATMs in Q2FY2024, taking overall tally to 2631 branches
and 2903 ATM`s end September 2023.
Book value of the
bank stood at Rs 741.5 per share at end September 2023, while the adjusted book
value (net of NNPA and 10% of restructured advances) was Rs 715.9 per share at
end September 2023.
Quarterly Performance
NII rises as NIM improves:
Bank has recorded 29% increase in the interest earned at Rs 11247.78
crore, while interest expenses increased 40% to Rs 6171.05 crore in Q2FY2024. NII
improved 18% to Rs 5076.73 crore in the quarter ended September 2023.
Healthy growth in the core
fee income: Bank has posted strong 18% growth in core fee income to Rs 1893 crore,
while the treasury income increased 17% to Rs 162 crore, leasing 13% rise in
the overall non-interest income to Rs 2281.75 crore in the quarter ended
September 2023. The forex income has declined 15% to Rs 227 crore.
Expenses ratio rises: The
operating expenses of the bank increased 25% to Rs 3477.59 crore, as other
expenses moved up 22% to Rs 2520.99 crore, while employee expenses increased 30%
to Rs 956.6 crore in Q2FY2024. Cost to income ratio increased to 47.3% in
Q2FY2024 compared with 44.2% in Q2FY2023. The Operating Profit increased 10% to
Rs 3880.89 crore.
Provisions and
contingencies decline: The bank has showed 15% decline in provisions
to Rs 973.83 crore.
Effective tax rate rose to 25.0% in Q2FY2024 from 24.9% in
Q2FY2023. Net Profit increased 22% YoY to Rs 2181.47 crore during quarter ended
September 2023.
Financial Performance
H1FY2024:
Bank has posted 27% increase
in net profit to Rs 4305.09 crore in the half year ended September 2023 (H1FY2024).
The net interest income increased 18% to Rs 9943.84 crore, while non-interest
income moved up 14% to Rs 4491.52 crore, pushing up net total income by 17% to
Rs 14435.36 crore in H1FY2024. The operating expenses increased 23% to Rs 6724.41
crore, while provision and contingencies dipped 18% to Rs 1965.40 crore, allowing
profit before tax to increase 27% to Rs 5745.55 crore in H1FY2024. The
cost-to-income ratio increased to 46.6% in H1FY2024 compared to 44.1% in
H1FY2023. An effective tax rate was steady at 25.1% in H1FY2024 compared to 25.0%
in H1FY2023. The net profit has increased 27% to Rs 4305.09 crore in H1FY2024.
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Indusind
Bank: Results
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Particulars
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2309
(3)
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2209
(3)
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Var %
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2309
(6)
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2209
(6)
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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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11247.78
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8708.03
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29
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21977.43
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16889.80
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30
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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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6171.05
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4405.98
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40
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12033.59
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8462.49
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42
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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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5076.73
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4302.05
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18
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9943.84
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8427.31
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18
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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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2281.75
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2010.82
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13
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4491.52
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3939.52
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14
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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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7358.48
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6312.87
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17
|
14435.36
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12366.83
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17
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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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3477.59
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2793.21
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25
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6724.41
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5453.50
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23
|
11412.00
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9559.29
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19
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Operating Profits
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3880.89
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3519.66
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10
|
7710.95
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6913.33
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12
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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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973.83
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1141.06
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-15
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1965.40
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2392.05
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-18
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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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2907.06
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2378.60
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22
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5745.55
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4521.28
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27
|
9859.65
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6173.65
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60
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Provision for tax
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725.59
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591.88
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23
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1440.46
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1131.27
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27
|
2469.93
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1562.53
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58
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PAT
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2181.47
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1786.72
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22
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4305.09
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3390.01
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27
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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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112.3
|
92.0
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110.8
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87.3
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|
95.1
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59.3
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Adj BV (Rs)
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715.9
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621.8
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715.9
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621.8
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674.8
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584.0
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*
Annualized on current equity of Rs 777.05 crore. Face Value: Rs 10, Figures
in Rs crore
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Source:
Capitaline Corporate Database
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