Induslnd Bank Q1 Results FY22-2023
India’s 5th largest private bank, Induslnd Bank Ltd, declared its Q1FY23 results after market close on 20 July, 2022.
IndusInd Bank reported an impressive rise in net profit of 64% Y-o-Y (year on year) and 16% Q-o-Q (quarter on quarter). The figure came in at ~ Rs.1,603 crore for the quarter. Net interest income (NII) stood at Rs. 4,125 crores, growing 16% Y-o-Y and ~4% Q-o-Q. The net interest margin (NIM) came in at 4.21% against 4.06% reported in the same quarter of the previous year.
Other income was recorded at Rs. 1,932 crores, growing 12% Y-o-Y against Rs. 1,723 crores. Core Fee grew an impressive 47% to Rs. 1,786 crores from Rs. 1,214 crores on a yearly basis.
As of Q1 FY23, the IndusInd Bank's deposits were recorded at Rs. 3,02,719 crores, registering a 13% Y-o-Y increase from Rs. 2,67,233 crores. Advances came in at Rs. 2,47,960 crores, increasing 18% Y-o-Y.
More on IndusInd Bank Q1 Results 2023
CASA deposits (that comprised 43% of total deposits as of June 30, 2022) grew to Rs. 1,30,508 crores, from Rs. 1,12,349 crores, with current account deposits (CAD) at Rs. 35,265 crores and savings account deposits at Rs. 95,243 crores.
According to management, IndusInd Bank witnessed a loan growth of 18% in the first quarter of this financial year, spearheaded by increased disbursements in vehicle and microfinance segments. While gross non-performing asset (GNPA) showed improvement on a Y-o-Y basis from 2.88% to 2.35%, the bank made total loan-related provisions for the quarter of Rs. 8,370 crores (3.38% of the loan book).
The client base of the bank was published at 3.2 crores. Induslnd Bank's distribution network, as of Q1 FY23, included 2,286 branches/banking outlets and 2,783 onsite and offsite ATMs.
Hits of IndusInd Quarterly Results Q1
- Net Profit jumped a stellar 61% Y-o-Y to Rs.1,631 crores from Rs. 1,016 crores.
- Net Interest Income (NII) grew 16% Y-o-Y, from Rs. 3,564 crores to Rs. 4,125 crores
- NIM grew to 4.21% against 4.06% last year.
- Other income grew by an impressive 12% Y-o-Y to Rs. 1,932 crores from Rs. 1,723 crores.
- Deposits displayed a growth of 13% Y-o-Y, from Rs. 2,67,233 crores to Rs. 3,02,719 crores.
- CASA showed a growth of 16% Y-o-Y, while savings deposits increased 19% Y-o-Y to Rs. 95,243 crores from Rs. 79,928 crores.
- Gross NPA and Net NPA ratios showed improvement Y-o-Y from 2.88% and 0.84% to 2.35% and 0.67%, respectively.
Misses of IndusInd Results
- Net Non-Performing Assets increased marginally by 0.03% Q-o-Q against the 0.67% recorded in the previous quarter.
What does the management say about the Q1 Results of IndusInd Bank
Commenting on the performance, Mr. Sumant Kathpalia, Managing Director & CEO, Induslnd Bank, said that the bank’s loan growth has accelerated to 18% from 12% last quarter. Its vehicle and microfinance had the best Q1 disbursements in history. Consumer and Corporate segments maintained steady growth. Retailisation of liabilities continues with 16% growth in CASA, and 17% growth in Retail deposits as per LCR resulting in overall deposit growth of 13%.
All key profitability metrics across NIMs, core PPOP margin, RoA, and RoE have maintained a positive trajectory. This resulted in profit after tax for the quarter at Rs. 1,631 crores growing by 61% Y-o-Y and 16% Q-o-Q.
Other things to know about Quarterly Results for Q1 FY23
- Induslnd Bank was the highest rated amongst Indian Banks in Refinitiv ESG Rankings.
- Induslnd Bank was the only Indian bank to be included in Dow Jones Sustainability YearBook.
- Induslnd Bank launched ESG-themed products this year. The bank also flagged Green Fixed Deposit in 2022. Moreover, the bank aims to become carbon neutral by 2032.
- Induslnd shares 3 key agendas for 2023:
- Women Entrepreneurship - Focus on retail banking
- Finance for Water Sector - SME & Corporate Bank
- EV Car Finance – Vehicle finance
- Bank’s RoA (return on assets) and RoE (return on equity) stood at 1.73% and 13.4% respectively. Its market capitalisation stood at ~Rs. 68,088 crores in this quarter.
To read the RA disclaimer, please click here
Research Analyst: Bavadharini KS