IndusInd Bank Q1 profit surges 30% to ₹2,124 cr; NII up 18%

IndusInd Bank reported net profit worth ₹2,124 crore for the quarter ended June 30, 2023, as compared to ₹1,631 crore during the corresponding quarter of the previous year, up by 30% YoY. The Hinduja group bank's net interest income grew 18% YoY to ₹4,867 crore, while the net interest margin stood at 4.29% in Q1 FY24 against 4.28% for Q4 FY23.

The lender's deposits stood at ₹3,47,047 crore against ₹3,02,719 crore in the year-ago period, an increase of 15%. CASA deposits increased to ₹1,38,440 crore, with current account deposits at ₹49,343 crore and savings account deposits at ₹89,097 crore.

"The quarter witnessed economic activity in the country gaining momentum as is visible from various high-frequency indicators. India remains a bright spot and the relative attractiveness was reflected in healthy foreign investment inflows during the quarter," says Sumant Kathpalia, Managing Director & CEO, IndusInd Bank.

He adds that IndusInd Bank began executing on its next 3-year plan (PC-6), starting Q1, which is focused on growth, granularity, and governance. "The Bank maintained a healthy loan growth rate of 22% YoY, driven by both consumer and corporate segments. The loan growth was supported by retail deposit growth of 21% YoY and overall deposit growth of 15%."

The bank says yield on assets stands at 9.60% in Q1 FY24 against 8.35% YoY and cost of funds increased to 5.31% against 4.14% YoY.

Other income at ₹2,210 crores for the quarter ended June 30, 2023, as against ₹1,932 crore in the year-ago period, up 14%. Core Fee grew 19% YoY to ₹2,119 crore as against ₹1,786 crore for the year-ago period.

The bank's advances increased 22% to ₹3,01,317 crore against ₹2,47,960 crore during the last year period. With this, IndusInd's balance sheet as on June 30, 2023, was ₹4,66,993 crore against ₹4,10,100 crore as on June 30, 2022, marking a growth of 14%.

In asset quality, the IndusInd Bank's loan book quality remains "stable". Gross NPAs were at 1.94% of gross advances in the first quarter of the fiscal year, while they were 1.98% in the year-ago period.

Net NPAs of the bank stood at 0.58% of net advances as on June 30, 2023, vs 0.59% as on March 31, 2023. Provisions and contingencies for the quarter dipped 21% to ₹991 crore vs ₹1,251 crore in the year-ago period. The bank's total loan-related provisions accounted for ₹7,239 crore, which is around 2.4% of its entire loan book.

The bank’s total capital adequacy ratio as per Basel III guidelines stands at 18.40% as compared to 18.14% as on June 30, 2022. The bank’s distribution network included 2,606 branches or banking outlets, and 2,875 onsite and offsite ATMs, and its client base stood at 35 million as on June 30, 2023.