Updated January 18th, 2024 at 17:43 IST

IndusInd Bank beats Q3 profit estimates with 17.3% jump on strong loan growth

IndusInd Bank reported a 20% YoY growth in loan disbursements, coupled with a 13% increase in deposits.

Reported by: Business Desk
IndusInd Bank Q3 earnings | Image:IndusInd Bank website
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IndusInd Bank Q3 results: Private sector lender IndusInd Bank reported a robust 17.3 per cent increase in net profit for the third quarter, surpassing analyst estimates due to significant loan growth.

The bank disclosed a net profit of Rs 2,298 crore for the quarter ending December 31, exceeding the anticipated Rs 2,278 crore according to LSEG data.

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IndusInd Bank reported a 20 per cent YoY growth in loan disbursements, coupled with a 13 per cent increase in deposits. The net interest margin, a crucial metric indicating the profitability of lending, slightly rose to 4.29 per cent compared to 4.27 per cent a year ago, remaining unchanged from the previous quarter.

Despite the consistent double-digit loan growth reported by Indian banks in recent months, rising deposit costs have exerted pressure on profit margins. Even HDFC Bank, India's leading private bank, reported weakened margins for the second consecutive quarter on Tuesday.

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IndusInd Bank's net interest income, representing the difference between interest earned and paid, witnessed a substantial increase to Rs 5,296 crore from Rs 4,495 crore a year ago. Interest earned grew by 22.3 per cent, while provisions and contingencies, earmarked to cover potential loan losses, decreased by 12.3 per cent to Rs 934 crore.

(With Reuters inputs.)
 

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Published January 18th, 2024 at 17:43 IST