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Informist, Thursday, Oct. 24, 2024

 

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--IndusInd Bank Jul-Sept net profit INR 13.25 bln vs INR 21.81 bln
--Analysts saw IndusInd Bank Jul-Sept net profit INR 22.1 bln
--IndusInd Bank Basel III capital adequacy ratio 16.51% as on Sept 30
--IndusInd Bank gross NPA ratio 2.11% as on Sept 30 vs 2.02% qtr ago
--IndusInd Bank Jul-Sept provisions INR 18.20 bln vs INR 9.74 bln year ago
--IndusInd Bank Jul-Sept total income INR 148.70 bln vs INR 135.30 bln
--IndusInd Bank net NPA ratio 0.64% as on Sept 30 vs 0.60% qtr ago
--IndusInd Bank Apr-Sept net profit INR 34.78 bln vs INR 43.05 bln
--IndusInd Bank Apr-Sept total income INR 298.58 bln vs INR 264.69 bln
--IndusInd Bank: Hold contingency provision on INR 15.25 bln as on Sept 30
--IndusInd Bank Apr-Sept provisions INR 28.70 bln vs INR 19.65 bln
--IndusInd Bank Jul-Sept net interest income INR 53.47 bln, up 5% on year
--IndusInd Bk Jul-Sept NIM 4.08% vs 4.25% in Apr-Jun, 4.29% last year
--IndusInd Bank advances INR 3.57 tln as on Sept. 30, up 13% on year
--IndusInd Bank deposits INR 4.12 tln as on Sept. 30, up 15% on year
--IndusInd Bk microfinance loan book INR 327 bln as on Sept 30, down 5% YoY
--IndusInd Bk microfinance loans INR 327 bln as on Sept 30, down 12% on qtr
--IndusInd Bank: Jul-Sept cost of deposits 6.55%, up 2 bps from Apr-Jun
--IndusInd Bank: Jul-Sept cost of deposits up 20 bps YoY
--IndusInd Bank CASA ratio 36% as on Sept 30 vs 37% quarter ago
--IndusInd Bk Jul-Sept fresh slippage INR 17.98 bln vs INR 15.36 bln Apr-Jun
--IndusInd Bank Jul-Sept write-offs INR 6.67 bln vs INR 6.14 bln in Apr-Jun
--IndusInd Bank Jul-Sept loan upgrades INR 1.48 bln vs INR 1.13 bln Apr-Jun
--IndusInd Bk Jul-Sept loan recoveries INR 4.71 bln vs INR 3.75 bln Apr-Jun
--IndusInd Bank: Sold NPAs worth INR 2.36 bln in Jul-Sept to ARCs
--IndusInd Bank: Raised contingent provision buffer by INR 5.25 bln Jul-Sept

 

By Kshipra Petkar and Richard Fargose

 

MUMBAI – IndusInd Bank reported a net profit of INR 13.25 billion, down sharply by 39.50% on year, in the quarter ended September on account of a sharp rise in provisions. Sequentially, the bottom line was down 38.4%. Analysts had expected the net profit at INR 22.1 billion, as per the average of estimates from 14 brokerages.

 

Provisions of the bank increased by 86.9% on year to INR 18.20 billion for the reporting quarter. Sequentially, the provisions were up 73.4%. The asset quality of the bank worsened, with gross non-performing asset ratio at 2.11% as of Sept. 30, up from 2.02% reported a quarter ago and the net NPA ratio at 0.64% from 0.60% as reported a quarter ago. 

 

"The Profit After Tax at INR 1,331crores (13.31 billion) lower by 40% YoY as we build contingent provision buffer this quarter," said Sumant Kathpalia, the managing director and chief executive officer of IndusInd Bank in the press release.

 

Provisions and contingencies for the quarter ended September include an increase of INR 5.25 billion in the contingent provisions as a prudent measure, the bank said. The Bank held contingency provision of INR 15.25 billion as on Sept. 30 and total loan related provisions stood at INR 84.12 billion rupees or 2.4% of loan book.  

 

During Jul-Sept, the bank saw fresh slippage of INR 17.98 billion, higher than INR 15.36 billion in the previous quarter. Of which, INR 16.80 billion were from the consumer segment, and INR 1.18 billion from corporates.

 

During the quarter under review, IndusInd Bank wrote off bad loans worth INR 6.67 billion compared with INR 6.14 billion in Apr-Jun. Loan upgrades during the quarter under review were INR 1.48 billion, slightly higher than INR 1.13 billion in Apr-Jun. The bank reported bad loan recoveries of INR 4.71 bln in the September quarter, as against INR 3.75 billion in Apr-Jun. The private sector bank sold NPAs worth INR 2.36 billion in Jul-Sept to asset recast companies.

 

For the half year ended September, IndusInd Bank reported net profit of INR 34.78 billion as against INR 43.05 billion a year ago, and total income was INR 298.58 billion in Apr-Sept compared to INR 264.69 billion. Provisions and contingencies in Apr-Sept stood at INR 28.70 billion as against INR 19.65 billion a year ago.

 

The total income of the bank was at INR 148.70 billion for Jul-Sept compared with INR 135.30 billion as reported a year ago. The net interest income of the bank rose by 5% on year to INR 53.47 billion for the quarter in review. Net interest margins moderated by 21 basis points on year and 17 basis points on quarter to 4.08%. 

 

The bank said net interest margin was lower as it reduced share of microfinance loans in the overall loans.

 

The private sector bank's deposits as of Sept. 30 were INR 4.12 trillion, an increase of 15% on year. Current account, savings account deposits ratio stood at 36% of total deposits as at Sept. 30, as against 37% a quarter ago and 39% a year ago. Advances as of September were INR 3.57 trillion, up 13% on year.

 

The bank’s microfinance loan book stood at INR 327 billion as on Sept 30, down 5% on year and 12% on quarter. IndusInd Bank’s cost of deposits was 6.55% in Jul-Sep, up 2 basis points from previous quarter and 20 bps on year.

 

IndusInd Bank’s capital adequacy ratio as per Basel III guidelines stands at 16.51% as on Sept. 30, as compared with 18.21% a year ago. Tier-1 capital adequacy ratio was at 15.21% as on Sept. 30.

 

Thursday, IndusInd Bank shares ended at INR 1,280.05 on the NSE, up 0.45%. The bank released its earnings for the quarter ended September post Indian market hours.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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