IndusInd Bank Q4 earnings: Net profit zooms 50% to Rs 2,040 crore

IndusInd Bank beat estimates on April 24 with a standalone net profit of Rs 2040.51 crore for the March quarter of 2022-23, up 49.88 percent over the last year’s figure of Rs 1361.37 crore.

Brokerages had predicted a 43.3 percent on-year rise in bottomline.

Net interest income of the lender came in at Rs 4669.46 crore, registering a rise of 17 percent year-on-year.

The Board of the bank also recommended a payment of dividend at the rate of Rs 14 per share subject to approval of the shareholders at the ensuing Annual General Meeting.

The company in a regulatory filing said its loan growth was accelerated by retail businesses. Its retail loans grew by 7 percent QoQ improving share of retail loans at 54 percent. Corporate growth driven by Mid & Small corporate at 7 percent QoQ and Large corporate at 5 percent QoQ.

    Core fee income grew by 27 percent YoY and 8 percent QoQ during Q4FY23. Contribution of retail consumer banking fee for Q4FY23 at 74 percent of total fee income.

    Net interest margins came in at 4.28 percent, up 8 basis points YoY and 1 basis points QoQ. Return on assets (RoA) also improved 39 basis points YoY and 3 basis points to 1.90 percent.

    Asset quality of the bank also improved. Gross non performing assets (NPA) and net NPA improved to 1.98 percent and 0.59 percent, respectively.

    Loan related provisions held by the bank were at Rs 7,324 crore were at 2.5 percent of the loans. Specific provision was at Rs 4,041 crore for non-performing accounts, floating provisions at Rs 70 crore, standard contingent provisions of Rs 1,900 crore and standard asset provisions of Rs 1,313 crore other than contingent provisions.

    Provision Coverage Ratio was at 71 percent and total loan related provisions at 126 percent of GNPA.

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