1. IndusInd Bank Q3 results: Net profit up 17%, asset quality stable

IndusInd Bank Q3 results: Net profit up 17%, asset quality stable

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2 min read • Updated: January 18, 2024, 5:52 PM

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Summary

The net interest margin (NIM), which is a key measure of a bank’s profitability, stood at 4.29% compared to 4.27% for Q3 FY23.

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In the December quarter, the private sector bank’s net profit grew by 17% year-on-year to ₹2,301 crore. This was aided by a 18% increase in net interest income (NII) to ₹5,296 crores. The loan book expanded by 20%, driven by robust growth in the retail loans segment.

However, net interest margin (NIM), which is a key measure of a bank’s profitability, stood at 4.29% compared to 4.27% for Q3 FY23.

The bank’s asset quality remained stable. Gross non-performing assets (NPAs) stood at 1.92% of the total loan book against 2.06% in the same period last year.

The net NPAs were at 0.57% compared to 0.61% in Q3FY23. The Provision Coverage Ratio was consistent at 71% as on 31 December 2023. Provisions and contingencies for the quarter stood at ₹969 crores compared to ₹1,065 crores for the corresponding quarter of previous year – a drop of 9% YoY.

Meanwhile, on the liability side, the CASA deposits comprise 38% of the total deposits.

Commenting on the macro factors, the management said that “Indian economy continues to show robust momentum delivering real GDP growth of 7.6% in Q2. The regulatory and fiscal policies have been effectively mitigating geo-political uncertainties in the global economy.”

It added that IndusInd Bank too continues to participate in the healthy economic outlook. “The bank remains on track in executing its strategy of delivering growth, granularity and governance,” said the management.