Private sector lender IndusInd Bank today posted net profit of Rs 2040.5 crore in the fourth quarter ended March 2023, up 49.9 per cent on-year as against Rs 1361.4 crore for the same quarter last year. This is in line with the estimated Rs 2,011.8 crore according to a CNBCTV18 poll. IndusInd Bank recorded net interest income (NII) for the quarter at Rs 4669.4 crore, up 17.2 per cent on-year in comparison to Rs 3985.2 crore during the fourth quarter of the previous year. The Bank’s Net Interest Margin (NIM) improved to 4.28 per cent as compared to 4.20 per cent for Q4FY22 and 4.27 per cent for Q3FY23.
IndusInd Bank also recommended payment of dividend at the rate of Rs 14 per equity share of Rs 10 each of the Bank, for the financial year 2022-23, it said in a regulatory filing.
IndusInd Bank reported a strong quarter with both gross non-performing assets (NPAs) and net NPAs on the downward trend. The Q4 gross NPA shrunk to 1.98% at the end of March 2023 from 2.06% a quarter ago. Net NPA too fell to 0.59 per cent from 0.62 per cent in the December quarter. The bank’s total deposits grew 15 per cent on-year to Rs 3,36,120 crores from Rs 2,93,349 crores. The loan book during the quarter under review grew 21 per cent to Rs 2.89 lakh crore as against Rs 2.39 lakh crore as of March 2022.
IndusInd Bank’s total income stood at Rs 6823 crore for the quarter, growing by 16 per cent on-year. The bank’s other income stood at Rs 2,154 crores for the quarter ended March 2023 as against Rs 1,903 crores for the corresponding quarter of previous year, growing by 13 per cent on-year. Core fee grew by 27 per cent on-year to Rs 2,087 crores as against Rs 1,644 crores for the same quarter the previous year. Operating expenses were at Rs 3,066 crores as against Rs 2,509 crores last year during the same quarter, increasing by 22 per cent.
Distribution network
As of March 31, 2023, IndusInd Bank’s distribution network included 2606 branches/ banking outlets and 2878 onsite and offsite ATMs, as against 2265 branches/ banking outlets and 2767 onsite and offsite ATMs the previous year. The client base was recorded at approximately 34 million. “The loan growth accelerated to 21 per cent YoY and retail deposit growth was at 19 per cent 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 at ₹2,043 crores – up 4% QoQ and 46% YoY,” said Sumant Kathpalia, Managing Director & CEO, IndusInd Bank. 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, he added.