IndusInd Bank garners 50% yoy rise in Q3 PAT to Rs1,242cr, NII logs 11% yoy growth to Rs3,794cr, Asset quality improves

31 Jan 2022 , 09:00 AM

Private lender, IndusInd Bank posted a robust December 2021 (Q3FY22) quarterly earnings with net profit rising by 50% to Rs1,242cr compared to Rs830cr during the corresponding quarter of the previous year. On Monday, IndusInd stock will be in focus amid stellar earnings.

The lender recorded a net interest income of Rs3,794cr in Q3FY22, growing by 11% YoY and 4% QoQ. Net Interest Margin for Q3 FY22 stood at 4.10% against 4.12% for Q3 FY21 and 4.07% for Q2 FY22.

Pre Provision Operating Profit (PPOP) stood at Rs3,312cr for the quarter increased by 12% over the corresponding quarter of the previous year at Rs2,964cr. PPOP/Advances ratio for the quarter ended December 31, 2021, steady at 5.9%.

The lender’s loan book quality was stable. Gross Non-Performing Assets were at 2.48% of gross advances as of December 31, 2021, as against 2.77% as of September 30, 2021. Net Non-Performing Assets were 0.71% of net advances as of December 31, 2021, as compared to 0.80% on September 30, 2021.

The Provision Coverage Ratio was consistent at 72% as of December 31, 2021, as well as at September 30, 2021. Provisions and contingencies for the nine months ended December 31, 2021, were Rs6,312cr  (comprising of provision for credit and other losses at Rs5,201cr and towards taxes on income at Rs1,111cr) as compared to Rs6,739cr (comprising of provision for credit and other losses at Rs6,077cr and towards taxes on income at Rs662cr) for the corresponding previous nine months, reduced by 6% YoY. Total loan-related provisions as of December 2021 were at Rs8,486cr (3.71% of loan book).

Deposits as on December 31, 2021 were Rs2,84,484cr as against Rs2,39,135cr, an increase of 19% over December 31, 2020. CASA deposits increased to Rs1,19,894cr with Current Account deposits at ₹33,279cr and Saving Account deposits at Rs86,615cr. CASA deposits comprised 42% of total deposits as of December 31, 2021.

The Bank’s Total Capital Adequacy Ratio as per Basel III guidelines improved to 18.06% as of December 31, 2021, as compared to 16.34% as of December 31, 2020. Tier 1 CRAR was at 16.37% as of December 31, 2021, compared to 15.62% as of December 31, 2020. If PAT for the nine months ended December 31, 2021, is considered, the CRAR will improve to 19.09%. Risk-Weighted Assets were at Rs2,81,086cr  as against Rs2,65,453cr a year ago. Advances as on December 31, 2021 were Rs2,28,583cr as against Rs2,07,128cr, an increase of 10% over December 31, 2020.

As of December 31, 2021, the Bank’s distribution network included 2,103 branches and banking outlets and 2,861 onsite and offsite ATMs across 769 geographic locations, as against 1,915 branches and banking outlets and 2,835 onsite and offsite ATMs across 751 geographic locations as of December 31, 2020.