Financial results for the Quarter/ Half Year ended September 30, 2023
FinTech BizNews Service
Mumbai, 18 October, 2023:
The Board of Directors of IndusInd Bank Limited approved the financial results of the Bank for the Quarter/ Half Year ended September 30, 2023, at their meeting held in Mumbai on Wednesday, October 18, 2023.
NIM at 4.29%, Net NPA at 0.57%, Provision Coverage Ratio at 71%, Capital Adequacy Ratio (CRAR) at 18.21% CASA at 39% and Liquidity Coverage Ratio at 117% underscore the strength of operating performance of the Bank and adequacy of capital
CONSOLIDATED
The Bank’s consolidated financial results include the financial results of its wholly owned subsidiary, Bharat Financial Inclusion Limited (BFIL), a business correspondent (BC) of the Bank involved in originating small ticket MFI loans for the Bank and IndusInd Marketing and Financial Services Private Limited (IMFS), an associate of the Bank.
Profit & Loss Account
Net Interest Income for the quarter ended September 30, 2023 at Rs. 5,077 crores, grew by 18% YoY and 4% QoQ. Net Interest Margin for Q2 of FY 2024 stood at 4.29% against 4.24% for Q2 of FY 2023 and 4.29% for Q1 of FY 2024.
Yield on Assets stands at 9.69% for the quarter ended September 30, 2023 as against 8.65% for the corresponding quarter of previous year. Cost of Fund stands at 5.40% as against 4.41% for corresponding quarter of previous year.
Other income at Rs. 2,282 crores for the quarter ended September 30,2023 as against Rs. 2,011 crores for the corresponding quarter of previous year, grew by 13% YoY. Core Fee grew by 13%YoY to Rs. 2,120 crores as against Rs. 1,872 crores for the corresponding quarter of previous year.
Operating expenses for the quarter ended September 30, 2023 were Rs. 3,450 crores as against Rs. 2,769 crores for the corresponding quarter of previous year, increased by 25%.
Pre Provision Operating Profit (PPOP) at Rs. 3,909 crores for the quarter ended September 30, 2023 registered a growth of 10% over the corresponding quarter of previous year at Rs. 3,544 crores. PPOP/Average Advance ratio for the quarter ended September 30, 2023 stands at 5.2%.
The net profit for the quarter ended September 30, 2023 was Rs. 2,202 crores as compared to Rs. 1,805 crores during corresponding quarter of previous year up by 22% YoY.
Net Interest Income for the half year ended September 30, 2023 increased to Rs. 9,944 crores, up by 18% from Rs. 8,427 crores corresponding previous half year.
Fee income at Rs. 4,492 crores for the half year ended September 30, 2023 as against Rs.3,943 crores for the corresponding previous half year.
For the half year ended September 30, 2023, the Bank earned Total Income (Interest Income and Fee Income) of Rs. 26,469 crores as compared to Rs. 20,832 crores for the corresponding previous half year.
Operating expenses for the half year ended September 30, 2023 were Rs. 6,695 crores as against Rs. 5,395 crores for the corresponding previous half year.
For the half year ended September 30, 2023, Total expenditure (Interest expended and Operating expenses) increased to Rs. 18,729 crores as compared to Rs. 13,857 crores for the corresponding previous half year.
PreProvision Operating Profit (PPOP) at Rs. 7,740 crores for the half year ended September 30, 2023 over the corresponding previous half year at Rs. 6,975 crores.
Net Profit for the half year ended September 30, 2023 was Rs. 4,326 crores as compared to Rs. 3,436 crores during corresponding previous half year increased by 26% YoY.
Balance Sheet
Balance sheet footage as on September 30, 2023 was Rs. 4,77,922 crores as against Rs. 4,26,575 crores as on September 30, 2022, showing growth of 12%.
Deposits as on September 30, 2023 were Rs. 3,59,548 crores as agains tRs. 3,15,532 crores, an increase of 14% over September 30, 2022. CASA deposits increased to Rs. 1,41,437 crores with Current Account deposits at Rs. 49,910 crores and Savings Account deposits at Rs. 91,527 crores. CASA deposits comprised 39% of total deposits as at September 30, 2023.
Advances as of September 30, 2023 were Rs. 3,15,454 crores as against Rs. 2,60,129 crores, an increase of 21% over September 30, 2022.
ASSET QUALITY
The loan book quality remains stable. The Gross NPA were at 1.93% of gross advances as on
September 30, 2023 as against 1.94% as on June 30, 2023. Net Non-Performing Assets were 0.57% of net advances as on September 30, 2023 as compared to 0.58% as on June 30, 2023.
The Provision Coverage Ratio was consistent at 71% as at September 30, 2023. Provisions and contingencies for the quarter ended September 30, 2023 were Rs. 974 crores as compared to Rs. 1,141 crores for the corresponding quarter of previous year, reduced by 15% YoY. Total loan related provisions as on September 30, 2023 were at Rs. 7,267 crores (2.3% of loan book).
CAPITAL ADEQUACY
The Bank’s Total Capital Adequacy Ratio as per Basel III guidelines stands at 18.21% as on September 30, 2023, as compared to 18.01% as on September 30, 2022. Tier 1 CRAR was at 16.75% as on September 30, 2023 compared to 16.44% as on September 30, 2022. Risk-Weighted Assets were at Rs. 3,50,376 crores as against Rs. 3,11,471 crores a year ago.
NETWORK
As of September 30, 2023, the Bank’s distribution network included 2631 branches/ Banking outlets and 2903 ATMs, as against 2320 Branches/ Banking outlets and 2807 ATMs as of September 30, 2022. The client base stood at 37 million as on September 30, 2023.
Commenting on the performance, Sumant Kathpalia, Managing Director & CEO, IndusInd Bank said: "The Indian economy continues to show resilience aided by effective fiscal and monetary actions despite increasing global geo-political uncertainty. The economic activity is expected to pick up pace with upcoming festive demand and robust consumption. IndusInd Bank too has seen robust growth during the quarter with retail loan growth of 25% driving overall loan book growth of 21%. The asset quality metrics were stable for the quarter with GNPA of 1.93% vs 1.94% QoQ and NNPA of 0.57% vs 0.58% QoQ. The net profit for the quarter was at Rs. 2,202 growing 22% YoY and 4% QoQ. The bank has also maintained performance metrics at healthy level in terms of NIMs at 4.29%, RoA at 1.90%, RoE at 15.33% and CRAR at 18.21%. The bank continues to invest in new growth initiatives as seen with the launch of a digital app INDIE and scale up of affluent banking, NRI banking and home loans. We expect these initiatives should support long term growth opportunity for the bank."
