IndusInd Bank's Q2 net profit up by 57%

20 Oct 2022 , 03:32 PM

A solid increase in loan disbursement and net interest income helped IndusInd Bank announce a % year-over-year increase in its standalone net profit for the months of July and September, which came to Rs1,805.22 crore. In comparison to Rs1,631.02 crore in April—June, the private sector bank's net profit increased by 11% on a sequential basis. The bank's net profit exceeded predictions made by a compilation of analysts from Bloomberg by a small margin.

The difference between interest earned and interest paid during the second quarter of the current fiscal year increased by 4% and 18%, respectively, for IndusInd Bank to reach Rs4,302 crore. The bank's net interest margin was 4.24 %, up 3 bps quarterly and 17 bps year over year.

"Overall, we operate on a three-year time horizon, and we have consistently stated that our (credit) growth will be at a CAGR of 16—18%. Sumant Kathpalia, MD and CEO of IndusInd Bank, stated in a post-earnings call that we expect to grow at a CAGR of 18—20% this year.

According to the most recent data from the RBI, the sector's overall growth in bank credit was 16.4% year over year as of September 23. IndusInd Bank will continue to provide rates that are higher than the market as part of its funding strategy, Kathpalia added.

"We have always stated that the granularization of deposits will be used to fuel our expansion. Additionally, we have stated that our liabilities will be priced 50 to 75 basis points higher than the market. I believe we will keep doing that. We have portfolios that are naturally refinanced by developmental associations, and we'll utilize them effectively as our organization expands," he said.

As of September 30, IndusInd Bank had loans of Rs2.6 trillion, an increase of 5% sequentially and 18% on an annual basis. Corporate banking accounted for 47% of all advances, or Rs 1.2 trillion, and Kathpalia predicted that it will expand by about 20% going forward.

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