IndusInd Bank Q3 Results FY2023, Net Profit at Rs. 1964 Crores

On 18th January 2023, IndusInd Bank announced its results for the third quarter of FY2023.

Key Highlights:

- Net Interest Income for the quarter at Rs.4,495 crores, grew by 18% YoY. 
- Net Interest Margin for Q3FY23 stood at 4.27%.
- Pre Provision Operating Profit (PPOP) at Rs.3,686 crores for Q3FY2023, registered a growth of 11%.
- PPOP/Average Assets ratio for Q3FY2023 at 3.51%.
-  Net Profit for Q3FY2023 was Rs.1,964 crores, up by 58% YoY.
- Other income at Rs.2,077 crores, grew by 11% YoY. 
- Core Fee grew by 28% YoY to Rs.1,941 crores 
- Operating expenses for Q3FY2023 were Rs.2,885 crores, which increased by 22%.

Business Highlights:

- Balance sheet footage as on December 31, 2022 was Rs.4,44,485 crores, growth of 14%.
- Deposits as on December 31, 2022 were Rs.3,25,278 crores, an increase of 14%.
- CASA deposits increased to Rs.1,36,379 crores with Current Account deposits at Rs.50,007 crores and Savings Account deposits at Rs.86,372 crores.
- Advances as of December 31, 2022 were Rs.2,72,754 crores, an increase of 19%.
- The Gross NPA was at 2.06% of gross advances as on December 31, 2022 as against 2.11% as on September 30, 2022. 
- Net Non-Performing Assets were 0.62% of net advances as on December 31, 2022 as compared to 0.61% as on September 30, 2022. 
- The Provision Coverage Ratio was consistent at 71% as at December 31, 2022. Provisions and contingencies for the quarter that ended December 31, 2022 were Rs.1,065 crores, reduced by 36% YoY. 
- Total loan-related provisions as on December 31, 2022 were at Rs.7,435 crores (2.7% of loan book). 
- The Bank’s Total Capital Adequacy Ratio as per Basel III guidelines stands at 18.01%.
- Tier 1 CRAR was at 16.47%.
- Risk-Weighted Assets were at Rs.3,22,484 crores as against Rs. 2,81,086 crores a year ago.
- As of December 31, 2022, the Bank’s distribution network included 2384 branches/ Banking outlets and 2894 onsite and offsite ATMs, as against 2103 Branches/ Banking outlets and 2861 onsite and offsite ATMs as of December 31, 2021. 
- The client base stood at 33 million as on December 31, 2022. 

Commenting on the performance, Mr. Sumant Kathpalia, Managing Director & CEO, IndusInd Bank said: “Indian economy continues to be a bright spot in the world even though the external macros are challenging. With strong fundamentals, the Indian banking sector has been resilient and continues to aid in the economic recovery. IndusInd Bank too continued its growth momentum across metrics. Bank's loan growth was at 19% YoY with all segments contributing to the growth. Retail deposits (as per LCR disclosure) grew by 21% YoY. GNPA was lower at 2.06% and NNPAs range bound at 0.62% with a healthy PCR of 71%. Bank's Core Operating Profit grew by 11% YoY bolstered by better NIMs and healthy client fees. Profit after Tax was at Rs.1,964 crores growing 9% QoQ and 58% YoY. The Bank remains on track to achieve its strategic ambitions and having financial metrics in the top quartile of the industry."