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.

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