IndusInd Bank, a private sector lender, reported robust financial results for the September quarter. The bank’s net profit saw a significant 22% year-on-year increase, reaching Rs 2,202.16 crore, compared to Rs 1,805.28 crore in the same quarter of the previous year. Interest earnings also experienced substantial growth, surging by 29% to reach Rs 11,247 crore in the September quarter, compared to Rs 8,708.03 crore in the corresponding quarter of the previous year. Notably, these Q2 earnings met market estimates.
IndusInd Bank’s pre-provisioning operating profit for Q2 displayed a healthy 10.28% growth, amounting to Rs 3,908.73 crore, as opposed to Rs 3,544.36 crore in the September 2022 quarter. The net interest income (NII), representing the difference between interest earned from lending activities and interest paid, increased by 18% to Rs 5,076 crore in Q2, compared to the Rs 4,302 crore reported in the corresponding quarter of the previous fiscal.
The bank witnessed a 14% increase in total deposits, which reached Rs 3.59 lakh crore compared to Rs 3.15 lakh crore. Within this, current account and savings account (CASA) deposits rose to Rs 1.41 lakh crore, with current account deposits at Rs 49,910 crore and savings account deposits at Rs 91,527 crore. CASA deposits accounted for 39% of total deposits as of September 30, 2023.
IndusInd Bank’s total advances also showed strong growth, with a 21% increase to Rs 3.15 lakh crore in Q2, compared to Rs 2.60 lakh crore in the September 2022 quarter.
On the asset quality front, gross non-performing assets (NPAs) in Q2 rose to Rs 6,164.22 crore, up from Rs 5,567.12 crore in the September 2022 quarter. However, the gross NPA ratio decreased to 1.93% in Q2, down from 2.11% in the corresponding quarter of the previous fiscal. The net NPA ratio slipped to 0.57% in Q2, compared to 0.61% in the September 2022 quarter, with net NPAs increasing to Rs 1,813.76 crore in Q2 from Rs 1,583.95 crore in the September 2022 quarter.
In market news, IndusInd Bank’s shares closed at Rs.1,421 on Wednesday, experiencing a 1.04% decline on the National Stock Exchange (NSE).