IndusInd Bank jumps over 2% after results impress investors; bank aims to achieve 18-23% growth in FY25

The bank's asset quality slightly deteriorated; gross non-performing assets (GNPA) were 2.02% of gross advances as of June 30, 2024, against 1.92% in the previous quarter. Net NPA was 0.60% of net advances, compared to 0.57% in a similar period.

The Provision Coverage Ratio was at 71%. Provisions and contingencies rose 6% To ₹1,050 crore YoY in Q1FY25 compared to ₹991 crore in the corresponding quarter of the previous year. Total loan-related provisions were at ₹7,537 crore (2.2% of loan book).

On the balance sheet side, loans and advances grew at a healthy rate of 15% YoY to ₹3.47 lakh crore for Q1FY25 as against ₹3.01 lakh crore for the previous year's same quarter.

Deposits rose 15% to ₹3.98 lakh crore in the quarter ended June 2024 against ₹3.47 lakh crores in Q1FY24. CASA deposits rose to ₹1.46 lakh crore, with Current Account deposits at ₹48,475 crore and Savings Account deposits at ₹97,659 crore. CASA deposits constituted 37% of total deposits as of June 2024.

Further, the bank said that it is aiming to achieve 18-23% growth in FY25. "We aim to achieve 18-23% growth for FY25 and do not feel the need to raise capital for now. As deposits have risen 15% on-year in the quarter ended June, we expect deposit growth in the range of 17-18% in the July-September period as well. Both the combined ratios will help push LDR in a comfortable range, enabling stable growth this fiscal year," the management said in an earnings conference call.

The stock touched a 52-week high of ₹1,694.35 on January 15, 2024, and a 52-week low of ₹1,354.7 on August 3, 2023. The company’s market capitalisation, at current market price of ₹1432.9 per share, stands at ₹1.11 lakh crore. IndusInd Bank shares are down 11% year-to-date. Meanwhile, benchmark indices NSE Nifty 50 and BSE Sensex made fresh all-time highs on Monday.