The Board of Directors of IndusInd Bank Limited approved the financial results of the Bank for the Quarter/ Nine Month ended December 31, 2022, at their meeting held in Mumbai on Wednesday, January 18, 2023.
NIM at 4.27%, Net NPA at 0.62%, Provision Coverage Ratio at 71%, Capital Adequacy Ratio (CRAR) at 18.01% CASA at 42% and Liquidity Coverage Ratio at 117% underscore the strength of operating performance of the Bank and adequacy of capital.
CONSOLIDATED FINANCIAL RESULTS
The Bank’s financial results include the financial results of its wholly owned subsidiary, Bharat Financial Inclusion Limited (BFIL), a business correspondent (BC) of the Bank involved in originating small ticket MFI loans for the Bank and IndusInd Marketing and Financial Services Private Limited (IMFS), an associate of the Bank.
Profit & Loss Account for the Quarter ended December 31, 2022
Net Profit for the quarter ended December 31, 2022 was ₹1,964 crores as compared to ₹1,242 crores during corresponding quarter of previous year up by 58% YoY.
Pre Provision Operating Profit (PPOP) at ₹3,686 crores for the quarter ended December 31, 2022 registered a growth of 11% over the corresponding quarter of previous year at ₹3,312 crores. PPOP/Average Assets ratio for the quarter ended December 31, 2022 at 3.51%.
Net Interest Income for the quarter ended December 31, 2022 at ₹4,495 crores, grew by 18% YoY and 4% QoQ. Net Interest Margin for Q3 of FY23 stood at 4.27% against 4.10% for Q3 of FY 22 and 4.24% for Q2 of FY23.
Yield on Assets stands at 8.99% for the quarter ended December 31, 2022 as against 8.36% for the corresponding quarter of previous year. Cost of Fund stands at 4.72% as against 4.26% for corresponding quarter of previous year.
Other income at ₹2,077 crores for the quarter ended December 31,2022 as against ₹1,877 crores for the corresponding quarter of previous year, grew by 11% YoY. Core Fee grew by 28% YoY to ₹1,941 crores as against ₹1,519 crores for the corresponding quarter of previous year.
Operating expenses for the quarter ended December 31, 2022 were ₹2,885 crores as against ₹2,358 crores for the corresponding quarter of previous year, increased by 22%.
Profit & Loss Account for nine month ended December 31, 2022
Pre Provision Operating Profit (PPOP) at ₹10,661 crores for the nine month ended December 31, 2022 over the corresponding previous nine month at ₹9,656 crores.
For the nine month ended December 31, 2022, the Bank earned Total Income (Interest Income and Fee Income) of ₹32,366 crores as compared to ₹28,404 crores for the corresponding previous nine months.
For the nine month ended December 31,2022, Total expenditure (Interest expended and Operating expenses) increased to ₹21,705 crores as compared to ₹18,749 crores for the corresponding previous nine months.
Net Interest Income for the nine month ended December 31, 2022 increased to ₹12,923 crores, up by 17% from ₹11,016 crores corresponding previous nine months.
Fee income at ₹6,019 crores for the nine month ended December 31, 2022 as against ₹5,442 crores for the corresponding previous nine months.
Operating expenses for the nine month ended December 31, 2022 were ₹8,280 crores as against ₹6,802 crores for the corresponding previous nine months.
Balance Sheet as of December 31, 2022
Balance sheet footage as on December 31, 2022 was ₹4,44,485 crores as against ₹3,90,564 crores as on December 31, 2021, showing growth of 14%.
Deposits as on December 31, 2022 were ₹3,25,278 crores as against ₹2,84,484 crores, an increase of 14% over December 31, 2021. CASA deposits increased to ₹1,36,379 crores with Current Account deposits at ₹50,007 crores and Savings Account deposits at ₹86,372 crores. CASA deposits comprised 42% of total deposits as at December 31, 2022.
Advances as of December 31, 2022 were ₹2,72,754 crores as against ₹2,28,583 crores, an increase of 19% over December 31, 2021.
ASSET QUALITY
The loan book quality remains stable. The Gross NPA were 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 ended December 31, 2022 were ₹1,065 crores as compared to ₹1,654 crores for the corresponding quarter of previous year, reduced by 36% YoY. Total loan related provisions as on December 31, 2022 were at ₹7,435 crores (2.7% of loan book).
CAPITAL ADEQUACY
The Bank’s Total Capital Adequacy Ratio as per Basel III guidelines stands at 18.01% as on December 31, 2022, as compared to 18.06 % as on December 31, 2021. Tier 1 CRAR was at 16.47% as on December 31, 2022 compared to 16.37% as on December 31, 2021. Risk-Weighted Assets were at ₹3,22,484 crores as against ₹ 2,81,086 crores a year ago.
NETWORK
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 ₹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.”
