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Informist, Friday, Jul 26, 2024

By Kshipra Petkar

--IndusInd Bank Apr-Jun net profit 21.52 bln rupees vs 21.24 bln 

--Analysts saw IndusInd Bank Apr-Jun net profit 23.30 bln rupees 

--IndusInd Bank Apr-Jun total income 149.88 bln rupees vs 129.39 bln 

--IndusInd Bank Apr-Jun provisions 10.50 bln rupees vs 9.92 bln 
--IndusInd Bank: Hold contingency provision of 10 bln rupees Jun 30 
--IndusInd Bank gross NPA ratio 2.02% as on Jun 30 vs 1.92% qtr ago 

--IndusInd Bank net NPA ratio 0.60% as on Jun 30 vs 0.57% qtr ago 

--IndusInd Bank Apr-Jun NIM 4.25% vs 4.26% qtr ago 
--IndusInd Bank Apr-Jun NII 54.08 bln rupees, up 11% on year 

--IndusInd Bank Basel III capital adequacy ratio 17.55% as on Jun 30 

MUMBAI – The net profit of IndusInd Bank was largely stable on year at 21.52 bln rupees for the quarter ended June, but fell by over 8% on quarter due to a rise in provisions and non-performing assets. Analysts had pegged the net profit of the Hinduja Group-promoted private bank at 23.3 bln rupees.

The provisions and contingencies were up 5.9% on year and 16.8% on quarter to 10.5 bln rupees. In terms of asset quality, the gross non-performing asset ratio increased to 2.02% as on Jun 30 from 1.92% a quarter ago and the net non-performing asset ratio was up 0.60% from 0.57% a quarter ago. In the notes, the bank said that they held contingency provision of 10 bln rupees as on Jun 30. The provision coverage ratio was 71%.

The bank reported fresh slippages of 15.36 bln rupees in the quarter under review. In a conference call, the bank's management said that of the total consumer slippage of 14.88 bln rupees, vehicle finance accounted for 6.50 bln rupees, loans to micro enterprises 3.40 bln rupees, and other retail finance accounted 4.90 bln rupees.

The bank's total income for the quarter rose 15.8% on year to 149.88 bln rupees. The consolidated net interest income was up 11% on year at 54.08 bln rupees, the bank said in its investor presentation. The net interest margin of the bank fell slightly to 4.25% from 4.26% a quarter ago.

Advances rose 15% on year to 3.48 trln rupees as on Jun 30. The consumer banking segment formed 55% of the portfolio and the corporate banking segment 45%.

Within consumer banking, the vehicle finance book grew 15% on year to 898.18 bln rupees. The microfinance loan book was up 16% on year at 370.46 bln rupees, but fell 5% on a sequential basis. The corporate loan book was up 13% on year at 1.57 trln rupees.

Within non-vehicle retail loans, the credit card portfolio was up 20% on year at 107.86 bln rupees as on Jun 30. Sumanth Kathpalia, managing director and chief executive officer of the bank, said they are seeing stress in the credit card segment. "In our portfolio we are seeing about 30 to 40 basis points stress is emerging in the credit card. Whether it's seasonal, we have to wait and watch," he said.

Deposits were also up 15% on year at 3.99 trln rupees as on Jun 30. Within deposits, term deposits were up 21% on year at 2.52 trln rupees and current, savings account deposits up 6% on year at 1.46 trln rupees. The cost of deposits was up 5 basis points on quarter at 6.53%.

The capital adequacy ratio was 17.55% and the common equity tier-I was 16.15% as on Jun 30.

LIQUIDITY MANAGEMENT NORMS

Kathpalia said the bank is still assessing the impact of the Reserve Bank of India's draft liquidity management standards guidelines issued late Thursday. "We think our impact (on liquidity coverage ratio) will be around 4-5%, but we are still working out the full impact."

The RBI has proposed that banks assign an additional 5% run-off factor on retail deposits opened by customers using internet and mobile banking facilities. The guidelines will come into effect on Apr 1.

Today, shares of the bank closed 1.8% higher at 1,403.90 rupees on the National Stock Exchange.  End

Edited by Ashish Shirke

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