More Stories

Informist, Friday, Jan. 31, 2025

 

Please click here to read all liners published on this story

--IndusInd Bank Oct-Dec net profit INR 14.01 bln 
--Analysts saw IndusInd Bank Oct-Dec net profit at INR 13.07 bln 
--IndusInd Bank Oct-Dec net profit INR 14.01 bln vs INR 22.98 bln yr ago
--IndusInd Bank Oct-Dec total income INR 151.51 bln vs INR 139.68 bln yr ago 
--IndusInd Bk Oct-Dec total provisions INR 17.44 bln vs INR 9.34 bln year ago 
--IndusInd Bk: Gross NPA ratio at 2.25% as on Dec 31 vs 2.11% qtr ago 
--IndusInd Bank: Net NPA ratio at 0.68% as on Dec 31 vs 0.64% qtr ago 
--IndusInd Bank Basel-III capital adequacy ratio at 16.46% as on Dec 31 
--IndusInd Bank: Sold NPAs worth INR 1.40 bln to asset recast cos in Oct-Dec 
--IndusInd Bk Oct-Dec loan recoveries INR 3.30 bln vs INR 4.71 bln qtr ago 
--IndusInd Bank Oct-Dec loan upgrades INR 1.50 bln vs INR 1.48 bln qtr ago 
--IndusInd Bank Oct-Dec loan write-offs INR 9.84 bln vs INR 6.67 bln qtr ago 
--IndusInd Bk Oct-Dec fresh slippage INR 22.00 bln vs INR 17.98 bln qtr ago 
--IndusInd Bk: Oct-Dec cost of funds 5.70% vs 5.61% in Jul-Sept 
--IndusInd Bank: Oct-Dec cost of deposits 6.58% vs 6.55% in Jul-Sept 
--IndusInd Bank: CASA ratio at 35% as on Dec 31 vs 36% quarter ago 
--IndusInd Bank: Average LCR 118% in Oct-Dec, unch from Jul-Sept 
--IndusInd Bank provision coverage ratio at 70% as on Dec 31 
--IndusInd Bank Oct-Dec net interest margin 3.93%, down 36 bps YoY 
--IndusInd Bk Oct-Dec net interest income INR 52.28 bln, down 1% YoY 
--IndusInd Bank: Hold INR 13.25 bln as on Dec 31 as contingency provisions 
--IndusInd Bank deposits at INR 4.09 tln as on Dec 31, up 11% YoY 
--IndusInd Bank advances at INR 3.67 tln as on Dec 31, up 12% YoY 
--IndusInd Bank Apr-Dec total income INR 450.09 bln vs INR 404.37 bln yr ago 
--IndusInd Bank Apr-Dec net profit INR 48.79 bln vs INR 66.03 bln year ago 
 

 

By Sourabh Kumar

 

NEW DELHI – IndusInd Bank's net profit fell 39% on year in Oct-Dec due to a surge in provisions. The private sector lender's provisions in the reporting quarter almost doubled from a year ago, rising 86.6% on year to INR 17.44 billion. Sequentially, however, these were down 4.2%.

 

In Oct-Dec, the bottom line of the bank rose 5.7% sequentially, but fell 39.0% on year to INR 14.01 billion.

 

In Jul-Sept, too, the bank's provisions had surged 86.9% on a yearly basis, dealing a hit to the net profit, which fell 39.5% on year during the quarter. 

 

While the bank's microfinance loan book increased 9% on year in Oct-Dec to INR 325.64 billion, it was almost flat sequentially. Microfinance accounted for 9% of the total loan book, the same as in the previous quarter.

 

The bank's asset quality worsened in Oct-Dec, with the net non-performing asset ratio rising 11 basis points on year to 0.68% as of Dec. 31. Sequentially, it was up 4 bps. The gross NPA ratio was 2.25% at the end of December, up 14 bps sequentially. The bank held a contingency provision of INR 13.25 billion as on Dec. 31. 

 

On Dec. 27, the bank had invited bids for the sale of non-performing retail microfinance loans worth INR 15.73 billion through a public auction process. Due to constant stress on asset quality, the bank's net profit for Apr-Dec fell 26.1% on year to INR 48.79 billion. In the same period, provisions of the bank rose 59.1% year-on-year to INR 46.14 billion.

 

Total income rose to INR 450.09 billion, up 11.3% on year in Apr-Dec.

 

For Oct-Dec, the total income was INR 151.51 billion, up 8.5%. The lender's advances were up 12% on year at INR 3.67 trillion as of Dec. 31. Sequentially, it was up 3%. The growth in loans was similar to the previous quarter.

 

Fresh slippages of the bank in Oct-Dec were INR 22.00 billion, up from INR 17.98 billion a quarter ago. The bank wrote off NPAs worth INR 9.84 bln in the latest quarter against INR 6.67 billion in the previous quarter.

 

Recoveries made by the bank in Oct-Dec fell to INR 3.30 billion from INR 4.71 billion a quarter ago. The provision coverage ratio remained steady on a quarterly basis at 70%.

 

While the bank's advances and deposits grew at a decent pace in the reporting quarter, its net interest margin saw a decline of 36 bps on a yearly basis to 3.93%. Sequentially, the margin was down 15 bps. A rise in both the cost of deposits and the cost of funds in the latest quarter weighed on the bank's net interest margin. Consequently, the private sector lender's net interest income fell 1% on year and 2% on quarter to INR 52.28 billion in Oct-Dec.

 

The bank's cost of funds increased 9 bps on a quarterly basis to 5.70% in Oct-Dec. The cost of deposits rose 14 bps to 6.58%, and was up 3 bps sequentially. Further, the cost-to-income ratio surged 508 bps on year to 52.52%. Sequentially, it was up 31 bps. The return on assets of the bank fell 90 bps on a yearly basis to 1.03% in Oct-Dec. However, sequentially, the return on assets was up 3 bps.

 

While the current account savings account deposits of IndusInd Bank rose 1% on year, it was down 3% on a quarterly basis at INR 1.43 trillion. The CASA ratio stood at 35% as on Dec. 31, down from the previous quarter's 36%. The bank maintained its liquidity coverage ratio at 118% as on Dec. 31 from the previous quarter. However, it was down from 122% in the corresponding quarter a year ago. Shares of the bank rose 3.6% on Friday to close at INR 991.20 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.