IndusInd Bank logs 17% y-o-y growth in net profit to Rs 2,301 crore; stock slips ~3%

19 Jan 2024 , 12:16 PM

On January 18, private sector lender IndusInd Bank recorded a net profit of Rs 2,301 crore for the October-December quarter of fiscal year (FY) 2023-24, up 17.1% from Rs 1,963.64 crore in the previous year.

The bank’s gross non-performing assets (NPAs) were 1.92%, down from 2.06% in the same period of the previous year. In contrast, the net NPA for the quarter was 0.57%, up from 0.662% in the previous corresponding period.

Following the earnings, IndusInd Bank shares fell 4% on the NSE today to an intraday low of Rs 1,561 per share.

Net interest income for the quarter ended December 31, 2023, at Rs 5,296 crore, increased by 18% year-on-year and 4% quarter-on-quarter. The net interest margin for the third quarter of fiscal year 24 was 4.29%, compared to 4.27% in the third quarter of fiscal year 23 and 4.29% in the second quarter.

Sumant Kathpalia, the Managing Director & CEO of IndusInd Bank, remarked that the Indian economy is displaying strong momentum, achieving a tangible GDP growth of 7.6% in the second quarter. He noted that regulatory and fiscal policies have been successful in addressing geopolitical uncertainties in the global economy. Additionally, Kathpalia highlighted that IndusInd Bank remains actively engaged in the positive economic prospects.

He also stated that the bank’s loan book increased by 20% year-on-year, thanks to a strong retail segment that increased by 24% year-on-year. The asset quality parameters were unchanged, with GNPA at 1.92% and NNPA at 0.57%. The bank has a good capital adequacy ratio, with a CRAR of 17.86% as of December 2023. The Bank is still on track to meet its growth, granularity, and governance objectives.

At around 11.54 AM, IndusInd Bank was trading 3.16% lower at Rs 1,561.90 per piece, against the previous close of Rs 1,612.90 on NSE.

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