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Indusind Bank has
reported 32% growth in net profit at Rs 2123.62 crore for the quarter ended
June 2023 (Q1FY2024). The bank has posted healthy 18% growth in net interest
income (NII), while the core fee income of the bank also improved 19% in
Q1FY2024. The Net Interest Margin (NIM) of the bank improved to 4.29% in
Q1FY2024 compared to 4.21% in the corresponding quarter of previous year.
On
business front, the bank as has posted 18% growth in business with strong 22% surge
in loan book. The asset quality of the bank was stable in Q1FY2024. Bank has
substantially improved the credit to deposit ratio to 86.8% at end June 2023
from 81.9% at end June 2022. The CASA ratio of the bank has declined to 39.9% at
end June 2023 from 43.1% at end June 2022.
Healthy asset
quality: The bank has maintained stable asset quality in Q1FY2024.
The fresh
slippages of loans stood at Rs 1376 crore in Q1FY2024 compared with 1603 crore
in previous quarter and Rs 2250 crore in the corresponding quarter last year.
The
recoveries of NPAs stood at Rs 279 crore, upgradations at Rs 99 crore and the
write-off of loans was at Rs 720 crore in Q1FY2024.
The
standard restructured loan book of the bank declined to Rs 1989 crore end June
2023.
Provision
coverage ratio was steady at 71.00% at end June 2023 compared to 71.00% a
quarter ago and 72.00% a year ago.
The
capital adequacy ratio of the bank stood at 18.4% with Tier I ratio at 16.9% at
end June 2023.
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Asset Quality Indicators: Indusind Bank
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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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Jun-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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5941.12
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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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2
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0
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Net NPA (Rs Crore)
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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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1661.21
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2
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5
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% Gross NPA
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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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2.35
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-4
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-41
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% Net NPA
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0.58
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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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-1
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-9
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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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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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18.40
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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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54
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26
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% CRAR - Tier I - Basel III
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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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16.55
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52
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34
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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 648364 crore
end June 2023, driven by 22% surge in advances to Rs 301317 crore. Deposits
rose 15% to Rs 347047 crore at end June 2023.
CASA
deposits ratio declines: The CASA deposits of the bank rose 6% YoY to
Rs 138440 crore at end June 2023. The CASA ratio declined to 39.9% at end June
2023 compared to 43.1% at end June 2022, while eased slightly from 40.0% a
quarter ago.
Strong
loan growth: Advances growth was driven by retail loans rising 21% YoY to Rs 161880
crore at end June 2023, while credit to MSME increased 20% to Rs 62372 crore at
end June 2023. The corporate credit has jumped 24% to Rs 77065 crore end June
2023.
Investment book of the
bank surged 30% YoY to Rs 94216 crore at end June 2023.
Margins
improve: The bank has showed 133 bps YoY jump in cost of deposits to 6.12%,
while yield on advances increased 85 bps YoY to 12.24% in Q1FY2024. The NIM has
improved 8 bps YoY to 4.29%.
Branch
expansion: The bank has a network of 2606 branches and 2875 ATM`s end June
2023.
Book
value of the bank stood at Rs 732.5 per share at end June 2023, while
the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 707.4
per share at end June 2023.
Quarterly
Performance
NII rises
as NIM improves: Bank has recorded 31% increase in the interest earned at Rs 10729.65
crore, while interest expenses increased 45% to Rs 5862.54 crore in Q1FY2024. NII
improved 18% to Rs 4867.11 crore in the quarter ended June 2023.
Healthy
growth in the core fee income: Bank has posted strong 19% growth
in core fee income to Rs 1857 crore, while the forex income increased 19% to Rs
262 crore. However, the treasury income declined -38% to Rs 91 crore. The
overall non-interest income improved 15% to Rs 2209.77 crore in the quarter
ended June 2023.
Expenses
ratio risea: The operating expenses of the bank increased 22% to Rs 3246.82 crore,
as other expenses moved up 19% to Rs 2383.94 crore, while employee expenses jumped
31% to Rs 862.88 crore in Q1FY2024. Cost to income ratio rise to 45.9% in
Q1FY2024 compared with 43.9% in Q1FY2023, helping the Operating Profit to increase
13% to Rs 3830.06 crore.
Provisions
and contingencies decline: The bank has showed -21% decline in
provisions to Rs 991.57 crore.
Effective
tax rate was steady at 25.2% in
Q1FY2024 from 25.2% in Q1FY2023. Net Profit rose by 32% YoY to Rs 2123.62 crore
during quarter ended June 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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2306
(3)
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2206
(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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10729.65
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8181.77
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31
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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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5862.54
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4056.51
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45
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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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4867.11
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4125.26
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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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2209.77
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1928.70
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15
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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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7076.88
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6053.96
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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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3246.82
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2660.29
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22
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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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3830.06
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3393.67
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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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991.57
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1250.99
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-21
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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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2838.49
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2142.68
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32
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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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714.87
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539.39
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33
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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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2123.62
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1603.29
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32
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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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109.5
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82.6
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95.2
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59.4
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Adj BV (Rs)
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707.4
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609.2
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674.8
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584.0
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*
Annualized on current equity of Rs 776.02 crore. Face Value: Rs 10, Figures
in Rs crore
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Source:
Capitaline Corporate Database
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