IndusInd Bank Q2 profit rises 22% to Rs 2,181 crore on robust growth in loans

Private sector lender IndusInd Bank reported a 22.1% rise in second-quarter profit on Wednesday, helped by robust growth in loans and core lending income. Its net profit rose to Rs 2,181 crore in the three months ended September 30 compared with Rs 1,787 crore a year earlier.

Net advances in the quarter jumped 21 per cent year-on-year, the bank said in an update earlier this month, while deposits registered a rise of 14 per cent.

The domestic lenders have been reporting double-digit loan growth consistently over the past few months, despite the Reserve Bank of India having hiked interest rates by 250 basis points since May 2022.

Banks have also shored up their deposit base to keep up with healthy loan demand and tightened liquidity conditions.

Its net interest income (NII) - the difference between interest earned and paid - rose 18 per cent to Rs 5,077 crore while provisions and contingencies, or funds set aside to cover loan losses were down 14.7 per cent to Rs 974 crore.

IndusInd Bank's gross non-performing assets (NPA), as a percentage of total advances, improved to 1.93 per cent from 2.11 per cent in the year ago period. Its net NPAs came in at 0.47 per cent versus 0.61 per cent.

In absolute terms gross NPAs stood at Rs 6,764.22 at the end of September quarter.

As of September 30, 2023, the Bank’s distribution network included 2,631 branches/banking outlets and 2,903 ATMs, as against 2,320 branches/banking outlets and 2,807 ATMs as of September 30, 2022. The client base stood at 37 million as on September 30, 2023.

"IndusInd Bank too has seen robust growth during the quarter with retail loan growth of 25% driving overall loan book growth of 21%. The asset quality metrics were stable for the quarter with GNPA of 1.93% vs 1.94% QoQ and NNPA of 0.57% vs 0.58% QoQ. The net profit for the quarter was at Rs 2,202 crore growing 22% YoY and 4% QoQ. The bank has also maintained performance metrics at healthy level in terms of NIMs at 4.29%, RoA at 1.90%, RoE at 15.33% and CRAR at 18.21%. The bank continues to invest in new growth initiatives as seen with the launch of a digital app INDIE and scale up of affluent banking, NRI banking and home loans. We expect these initiatives should support long term growth opportunity for the bank,” said Sumant Kathpalia, managing director & CEO, IndusInd Bank.

IndusInd Bank shares ended 0.97 per cent higher at Rs 1,420.80 ahead of its earnings announcement.

(With Reuters inputs)