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Indusind Bank has reported 60% growth in net profit at Rs 1786.72 crore
for the quarter ended September 2022 (Q2FY2023). The bank has posted healthy 18%
growth in net interest income (NII), while the core fee income of the bank improved
25% in Q2FY2023. The Net Interest Margin (NIM) of the bank gained to 4.24% in
Q2FY2023 compared to 4.07% in the corresponding quarter of previous year.
On business front, the bank as has posted 16% growth in
business with strong 18% surge in loan book. The asset quality of the bank was
stable in Q2FY2023. Bank has improved the credit to deposit ratio to 82.3% at
end September 2022 from 80.2% at end September 2021. The CASA ratio of the bank
has also improved to 42.3% at end September 2022 from 42.1% at end September
2021.
Asset quality improves: The
bank has improved asset quality in Q2FY2023 with the reduction in fresh
slippages of loans.
The fresh slippages of loans stood at Rs 1572 crore in
Q2FY2023 compared with 2250 crore in previous quarter and Rs 2658 crore in the
corresponding quarter last year.
The recoveries of NPAs stood at Rs 541 crore, upgradations
at Rs 229 crore and the write-off of loans was at Rs 1168 crore in Q2FY2023.
The standard restructured loan book of the bank declined at
Rs 3902 crore or 1.5% of loan book end September 2022 from 2.1% end June 2022.
Provision coverage ratio was steady at 72.00% at end
September 2022 compared to 72.00% a quarter ago and 72.00% a year ago.
The capital adequacy ratio of the bank stood at 18.0% with
Tier I ratio at 16.4% at end September 2022.
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Asset Quality
Indicators: Indusind Bank
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|
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Sep-22
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Jun-22
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Mar-22
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Dec-21
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Sep-21
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Variation
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QoQ
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YTD
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YoY
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Gross NPA (Rs Crore)
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5567.12
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5932.90
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5517.15
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5779.27
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6245.04
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-6
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1
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-11
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Net NPA (Rs Crore)
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1583.95
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1661.21
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1529.83
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1633.21
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1771.35
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-5
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4
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-11
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% Gross NPA
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2.11
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2.35
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2.27
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2.48
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2.77
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-24
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-16
|
-66
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% Net NPA
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0.61
|
0.67
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0.64
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0.71
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0.80
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-6
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-3
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-19
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% PCR
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72.00
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72.00
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72.00
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72.00
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72.00
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0
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0
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0
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% CRAR - Basel III
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18.01
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18.14
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18.42
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18.06
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17.37
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-13
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-41
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64
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% CRAR - Tier I -
Basel III
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16.44
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16.55
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16.80
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16.37
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16.68
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-11
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-36
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-24
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Variation in basis points
for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Healthy business growth: The
business of the bank has increased 16% YoY to Rs 576050 crore end September
2022, driven by 18% surge in advances to Rs 260129 crore. Deposits moved up 15%
to Rs 315921 crore at end September 2022.
Stable CASA deposits ratio: The CASA deposits of the bank increased 15% YoY to Rs 133525
crore at end September 2022. The CASA ratio rose to 42.3% at end September 2022
compared to 42.1% at end September 2021, while eased from 43.1% a quarter ago.
Strong loan growth: Advances
growth was driven by retail loans rising 14% YoY to Rs 138363 crore at end
September 2022, while credit to MSME increased 9% to Rs 53098 crore at end
September 2022. The corporate credit has surged 36% to Rs 68668 crore end
September 2022.
Investment book of the bank moved up 10% YoY to Rs 76034 crore at end
September 2022.
Margins improve: The
bank has showed 25 bps YoY rise in cost of deposits to 5.10%, while yield on
advances declined 15 bps YoY to 11.51% in Q2FY2023. The NIM has improved 17 bps
YoY to 4.24%.
Branch expansion: The
bank has added 34 branches and 24 ATMs in Q2FY2023, taking overall tally to 2320
branches and 2807 ATM`s end September 2022.
Book value of
the bank stood at Rs 647.6 per share at end September 2022, while the adjusted
book value (net of NNPA and 10% of restructured advances) was Rs 622.1 per
share at end September 2022.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 14% increase in the interest earned at Rs 8708.03
crore, while interest expenses moved up 10% to Rs 4405.98 crore in Q2FY2023. NII
improved 18% to Rs 4302.05 crore in the quarter ended September 2022.
Healthy growth in the core fee income: Bank has posted strong 25% growth in core fee income to Rs 1604
crore, while the forex income surged 21% to Rs 268 crore. However, the treasury
income declined 59% to Rs 139 crore, allowing 9% rise in the overall
non-interest income to Rs 2010.82 crore in the quarter ended September 2022.
Expenses ratio rises: The
operating expenses of the bank increased 20% to Rs 2793.21 crore, as other
expenses moved up 20% to Rs 2058.49 crore, while employee expenses jumped 22% to
Rs 734.72 crore in Q2FY2023. Cost to income ratio increased to 44.2% in
Q2FY2023 compared with 42.2% in Q2FY2022. Operating Profit rose 11% to Rs 3519.66
crore.
Provisions and contingencies decline: The bank has showed 33% decline in provisions to Rs 1141.06 crore.
PBT increased 62% to Rs 2378.60 crore in Q2FY2023.
Effective tax rate rose to 24.9%
in Q2FY2023 from 24.3% in Q2FY2022. Net Profit jumped by 60% YoY to Rs 1786.72 crore
during quarter ended September 2022.
Financial Performance H1FY2023:
Bank has posted 62% increase in net profit to Rs 3390.01 crore
in the year half year ended September 2022 (H1FY2023). The net interest income
increased 17% to Rs 8427.31 crore, while non-interest income moved up 11% to Rs
3939.52 crore, pushing up net total income by 15% to Rs 12366.83 crore in
H1FY2023. The operating expenses increased 20% to Rs 5453.50 crore, while
provision and contingencies declined 31% to Rs 2392.05 crore, allowing profit
before tax to increase 64% to Rs 4521.28 crore in H1FY2023. The cost-to-income
ratio rose to 44.1% in H1FY2023 compared to 42.1% in H1FY2022. An effective tax
rate moved up slightly to 25.0% in H1FY2023 compared to 24.3% in H1FY2022. The
net profit has increased 62% to Rs 3390.01 crore in H1FY2023.
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Indusind Bank: Results
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Particulars
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2209 (3)
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2109 (3)
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Var %
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2209 (6)
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2109 (6)
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Var %
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2203 (12)
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2103 (12)
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Var %
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Interest Earned
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8708.03
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7650.36
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14
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16889.80
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15225.06
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11
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30822.44
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28999.80
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6
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Interest Expended
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4405.98
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3991.96
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10
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8462.49
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8002.95
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6
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15821.60
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15471.91
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2
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Net Interest Income
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4302.05
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3658.40
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18
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8427.31
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7222.11
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17
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15000.84
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13527.89
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11
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Other Income
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2010.82
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1840.79
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9
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3939.52
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3557.18
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11
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7334.20
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6558.61
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12
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Net Total Income
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6312.87
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5499.19
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15
|
12366.83
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10779.29
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15
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22335.04
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20086.50
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11
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Operating Expenses
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2793.21
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2321.14
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20
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5453.50
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4535.36
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20
|
9559.29
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8359.83
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14
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Operating Profits
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3519.66
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3178.05
|
11
|
6913.33
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6243.93
|
11
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12775.75
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11726.67
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9
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Provisions &
Contingencies
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1141.06
|
1706.95
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-33
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2392.05
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3486.28
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-31
|
6602.10
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7942.53
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-17
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Profit Before Tax
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2378.60
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1471.10
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62
|
4521.28
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2757.65
|
64
|
6173.65
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3784.14
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63
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Provision for tax
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591.88
|
357.57
|
66
|
1131.27
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669.17
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69
|
1562.53
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947.75
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65
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PAT
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1786.72
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1113.53
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60
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3390.01
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2088.48
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62
|
4611.12
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2836.39
|
63
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EPS*(Rs)
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92.2
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57.5
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|
87.5
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53.9
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|
59.5
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36.6
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Adj BV (Rs)
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622.1
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545.8
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622.1
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545.8
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563.7
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533.8
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* Annualized on current equity of
Rs 775.24 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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