IndusInd Bank Q4FY23 net grows 45.9% to Rs2,043 crore on lower provisioning for doubtful debts
IndusInd Bank reported 24.7% growth in total revenues for the March 2023 quarter on consolidated basis at Rs12,174cr. Revenue growth was 5.55% in sequential terms for Q4FY23. Net interest income (NII) increased by 17% yoy at Rs4,669 crore in Q4FY23 while the net interest margins (NIM) expanded by 8 basis points to 4.28%. The NIM in the sequential December 2022 quarter was at 4.27%. The provision coverage ratio (PCR) for the quarter stood at 71%.
Net profits for the fourth quarter were up 45.9% at Rs2,043 crore on a consolidated basis, while the profits were up just 4.1% on sequential basis. The sharp spike in provisions was largely driven by lower provisioning in the quarter as the provisioning fell from Rs1,462 crore to Rs1,030 crore on a yoy basis, giving a big boost to the profits. Yield on assets spiked yoy from 8.28% to 9.2%, helping the profit margin, despite sharply higher expenses. Interest costs and operating costs had gone up sharply in the latest quarter.
Financial highlights for Mar-23 compared yoy and sequentially
| IndusInd Bank | |||||
| Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income | ₹ 12,174 | ₹ 9,763 | 24.70% | ₹ 11,534 | 5.55% |
| Operating Profit | ₹ 3,758 | ₹ 3,379 | 11.19% | ₹ 3,686 | 1.93% |
| Net Profit | ₹ 2,043 | ₹ 1,401 | 45.89% | ₹ 1,964 | 4.06% |
| Diluted EPS | ₹ 26.31 | ₹ 18.06 | ₹ 25.29 | ||
| Operating Margins | 30.86% | 34.62% | 31.96% | ||
| Net Margins | 16.78% | 14.35% | 17.02% | ||
| Gross NPA Ratio | 1.98% | 2.27% | 2.06% | ||
| Net NPA Ratio | 0.59% | 0.64% | 0.62% | ||
| Return on Assets (Ann) | 1.90% | 1.51% | 1.87% | ||
| Capital Adequacy | 17.86% | 18.42% | 18.01% |
In terms of business growth overall, the total deposits in the fourth quarter grew 15% to Rs3.36 trillion with the average CASA ratio standing at 40% of the total deposits base. The domestic loan portfolio grew by 21% on a yoy basis to Rs2.90 trillion. Gross NPAs have fallen yoy from 2.27% to 1.98% while the net NPAs also fell from 0.64% to 0.59%.The return on assets on a quarterly basis is getting closer to the 0.50% mark, which is a healthy scenario.