IndusInd Bank Q4 profit surges 15% to Rs 2,349 crore, beats estimates

IndusInd Bank Q4 results: IndusInd Bank announced a 15 per cent growth in consolidated net profit, reaching Rs 2,349.15 crore in the March quarter, attributed to strong core income growth.

For the entire fiscal year 2023-24, the city-based private sector bank witnessed a 21 per cent surge in net profit to Rs 8,977 crore from Rs 7,443 crore.

The bank's core net interest income expanded by 15 per cent to Rs 5,376 crore during the quarter, supported by an 18 per cent growth in advances, despite a slight compression in the net interest margin at 4.26 per cent.

Sumant Kathpalia, the Chief Executive Officer and Managing Director stated that the bank is targeting a loan growth ranging between 18 per cent and 22 per cent for FY25, with the net interest margin expected to range from 4.2 per cent to 4.3 per cent in the upcoming quarters.

IndusInd Bank recorded a 14 per cent increase in deposits, although Kathpalia acknowledged challenges in deposit accretion due to tight liquidity conditions.

The bank's other income surged by 16 per cent to Rs 2,508 crore, inclusive of a core fee income of Rs 2,293 crore.

Loan growth was propelled by both retail and corporate segments, with retail loans accounting for 56 per cent of the total, emphasizing small-value, high-margin loans.

Regarding asset quality, gross slippages amounted to Rs 1,428 crore, primarily from consumer loans. The gross non-performing assets ratio remained steady at 1.92 per cent, consistent with the preceding quarter.

Operating expenses in FY24 increased significantly to Rs 14,148 crore compared to Rs 11,346 crore in the previous year, resulting in a cost-to-income ratio of 48.23 per cent. Kathpalia noted that IT expenses currently account for 8-10 per cent of the cost to income.

The bank's branch network expanded to 2,984 by March, with plans to reach 3,500 branches in the next two years.

Responding to queries about the Hinduja family's interest in increasing their stake in the bank, Kathpalia stated that the bank does not know of any communication between the RBI and the family.

IndusInd Bank's shares closed 1.46 per cent higher at Rs 1,496.15 apiece on the BSE on Thursday, outperforming the benchmark's 0.66 per cent gain. 

(With PTI inputs)