IndusInd Bank Q4 results: Profit surges 46% to ₹2,043 cr

IndusInd Bank's consolidated net profit jumped 46% year-on-year for the January-March quarter, beating analyst estimates.

Net profit of the private lender rose to ₹2,043 crore for the quarter ended March as compared to ₹1,401 crore during the corresponding quarter of the previous year.

The growth in net profit was led by higher interest income. Net Interest Income of the bank jumped 17% year-on-year to ₹4,669 crore in Q4. Other income for the quarter grew by 13% year-on-year to ₹2,153.6 crore.

Net interest margin for the January-March quarter stood at 4.28% as against 4.2% in the year-ago period and 4.27% for Q3 of FY23.

The lender said its loan book quality remains stable. Gross non-performing asset ratio stood at 1.98% of gross advances as on March 31, 2023, as against 2.06% as on December 31, 2022. Net NPA ratio fell to 0.59% of net advances as on March 31, 2023 as compared to 0.62% as on December 31, 2022.

The bank's loan-related provisions were at ₹7,324 crore or 2.5% of loan book, as on March 31, 2023.

Operating expenses for the quarter rose 22% to ₹3,066 crore as against ₹2,509 crore for the corresponding quarter of previous year.

"Indian economy continues to be a bright spot in the otherwise weak global environment, supported by prudent monetary and fiscal policies. This was also reflected in the healthy momentum seen across businesses of our bank. The loan growth accelerated to 21% YoY and retail deposit growth was at 19% YoY. The bank's profitability metrics maintained uptrend across net interest margins, return on assets and return on equity. The quarterly net profit thus crossed ₹2,000 crore mark for the first time," says Sumant Kathpalia, managing director and CEO, IndusInd Bank.

The lender's full-year profit was at ₹7,443 crore, up 55% year on year.

"The bank also announced its next three-year strategy with Growth, Granularity and Governance as key pillars to achieve higher market share with diversification in risk. With stable macro-economic environment and recovery in key businesses, the bank is confident of achieving its growth ambitions," Kathpalia adds.

As of March 31, 2023, the bank's distribution network included 2,606 branches and 2,878 onsite and offsite ATMs, as against 2,265 branches and 2,767 onsite and offsite ATMs as of March 31, 2022. The client base stood at around 34 million as on March 31, 2023.

Deposits as on March 31, 2023, were ₹3,36,120 crore as against ₹2,93,349 crore, an increase of 15% over March 31, 2022. CASA deposits increased to ₹1,34,728 crores with Current Account deposits at ₹50,600 crores and Savings Account deposits at ₹84,128 crores.

Advances as of March 31, 2023, were ₹2,89,924 crore as against ₹2,39,052 crore, an increase of 21% over March 31, 2022.

The bank's board recommended a dividend of ₹14 per share for FY23.