IndusInd Bank logs 22% y-o-y growth in net profit; stock zooms ~3%

19 Oct 2023 , 10:57 AM

IndusInd Bank, a private-sector lender, reported a 22% increase in net profit to Rs 2,202 crore in the second quarter, driven mostly by an increase in core revenue.

The bank posted a net profit of Rs 1,805 crore during the same quarter last year.

During the quarter, net interest income, or the bank’s core earnings from lending, increased 18% to Rs 5,067 crore.

The net interest margin, or NIM, increased to 4.29% from 4.24%, and Kathpalia stated that the bank aspires to keep NIMs in the 4.2%-4.3% region. The cost of the fund is 5.40%, compared to 4.41% in the same quarter last year.

The Gross NPA remained slightly better than 1.94% on June 30, 2023. Net NPA has also decreased to 0.57% from 0.58% on June 30, 2023. Slippages were Rs 1,465 crore, with Rs 214 crore going to the corporate category.

According to Kathpalia, the rise was principally driven by a single corporate account of Rs 168 crore, which migrated into the NPA category from SMA 2. In this quarter, slippages climbed by 6.7%. As of September 30, 2023, the provision coverage ratio remained constant at 71%.

Provisions and contingencies fell 15% to Rs 974 crore, down from Rs 1,141 crore in the same period of the previous year. The entire loan provisions amounted to Rs 7,267 crore.

 

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