IndusInd Bank Q1 results: Beat street expectations with strong profit growth, stable asset quality
IndusInd Bank's first-quarter results were strong, reflecting the bank's strong performance in the past few years. The bank's core business continued to perform well, with net interest income (NII) and net interest margin (NIM) growing at a healthy pace. Asset quality remained stable, with gross non-performing assets (NPAs) falling to their lowest level in several years.
Capital adequacy remained strong, providing the bank with a solid financial foundation. Net Interest Income (NII) increased by 18% YoY to ₹4,867 crores from ₹4,125 crores. Net Interest Margin (NIM) improved to 4.29% in Q1 FY24, compared to 4.21% in Q1 FY23 and 4.28% in Q4 FY23.
Quarterly Net Profit showed a YoY growth of 30%, reaching ₹2,124 crores from ₹1,631 crores. Deposits witnessed a YoY growth of 15% to ₹3,47,047 crores from ₹3,02,719 crores. Gross Non-Performing Assets (NPA) ratio and Net NPA ratio improved to 1.94% and 0.58% respectively, compared to 2.35% and 0.67% YoY.
The Provision Coverage Ratio (PCR) stood at 71% as of June 30, 2023. Capital to Risk-Weighted Assets Ratio (CRAR) as of June 30, 2023, was recorded at 18.40%, showing a slight increase from 18.14% on June 30, 2022. Key Highlights of Profit & Loss Account for the Quarter ended June 30, 2023: The net profit for the quarter reached ₹2,124 crores, showing a growth of 30% YoY compared to ₹1,631 crores in the corresponding quarter of the previous year.
The Pre-Provision Operating Profit (PPOP) amounted to ₹3,831 crores, reflecting a 12% YoY increase from ₹3,431 crores in the corresponding quarter of the previous year. The PPOP/Average Advances ratio for the quarter stood at 5.5%. Net Interest Income for the quarter was ₹4,867 crores, indicating an 18% YoY growth and a 4% QoQ growth.
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