IndusInd Bank Ltd.’s reported first-quarter consolidated net profit grew 30% year-on-year (y-o-y) to ₹2,124 crore on account of an improvement in asset quality and rise in net interest income (NII) and core fee income..
NII for the quarter at ₹4,867 crore, grew by 18% (y-o-y). Net Interest Margin stood at 4.29% against 4.21% a year ago. Core fee income grew by 19% YoY to ₹2,119 crore.
Total assets grew 14% y-o-y to ₹4,66,993 crore. Deposits as on June 30, 2023 were ₹3,47,047 crore, up 15% y-o-y. Advances as of June 30, 2023 were ₹3,01,317 crore, up 22% y-o-y.
The bank said its loan book quality remained stable. Gross NPA were at 1.94% of gross advances as on June 30, 2023 as against 1.98% as on March 31, 2023. Net NPA were 0.58% of net advances as on June 30, 2023 as compared to 0.59% as on March 31, 2023.
The Provision Coverage Ratio was consistent at 71% as at June 30, 2023. Provisions and contingencies for the quarter ended June 30, 2023 were ₹991 crore as compared to ₹1,251 crore a year ago, down 21%. Total loan related provisions as on June 30, 2023 were at ₹7,239 crore (2.4% of loan book).
The bank’s Total Capital Adequacy Ratio as per Basel III guidelines stood at 18.40% as on June 30, 2023, as compared to 18.14% as on June 30, 2022. Tier 1 CRAR was at 16.44% as on June 30, 2023 compared to 16.06% as on June 30, 2022. Risk-Weighted Assets were at ₹3,34,370 crore as against ₹3,03,188 crore a year ago.
Sumant Kathpalia, Managing Director & CEO, IndusInd Bank said, “The Bank maintained healthy loan growth rate of 22% y-o-y driven by both consumer and corporate segments. The loan growth was supported by retail deposit growth (as per LCR) of 21% y-o-y and overall deposit growth of 15%.”
“The asset quality metrics too improved this quarter with lower fresh slippages and provisions y-o-y and Q-o-Q. Overall, Q1 marks a healthy start to our PC-6 strategy and we remain committed to achieving our ambitions outlined in the plan,” he said.
