IndusInd Bank Q2 net up 73% to Rs 1,147 cr on steady rise in NII, fees

Net Interest Income up 12% YoY, but Net Interest Margin dipped by nine bps

Private lender IndusInd Bank’s net profit rose by 73 per cent at Rs 1,147 crore in the second quarter ended September 2021 (Q2FY22) on back of steady increase in net interest incomes and fees.  

It had posted a net profit of Rs 663 crore for Q2 Fy 21. Sequentially, it was up 13 per cent from Rs 1,016 crore in June 2021 (Q1FY22).

Sumant Kathpalia, Managing Director & CEO, said the increase in profit has come from Net interest income and fees – across streams.  

Its Net Interest Income (NII) rose by 12 per cent in the reporting quarter at Rs 3,658 crore for Q2FY22 from Rs 3,278 crore. Sequentially NII rose by three per cent from Rs 3,564 crore in Q1FY22. However, Net Interest Margin (NIM) dipped by nine basis points at 4.07 per cent for Q2 FY 22 from 4.16 per cent a year ago. Sequentially, NIMs inched up from 4.06 per cent in June 2021.

The fee income expanded by 18 per cent to Rs 1,838 crore in September 2021 from Rs 1,554 crore a year ago. Sequentially, it grew by three per cent from Rs 1,788 crore in the June 2021 quarter. Out of it, the loan process fees were up 100 per cent to Rs 424 crore from Rs 212 crore a year ago. Sequentially, it was up 25 per cent from Rs 339 crore in June 2021 quarter.

Its stock closed lower by 1.1 per cent to Rs 1,141.85 per share on BSE.

Its provisions and contingencies declined by 13 per cent to Rs 1,703 crore in Q2FY22 from Rs 1,964 crore in Q2FY21. Sequentially also they fell by eight per cent from Rs 1,844 crore in Q1FY22. The provision Coverage Ratio fell to 72 per cent in September 2021 from 77 per cent in September 2020. PCR was 72 per cent in June 2021.

Its Gross Non-Performing Assets (NPAs) ratio at 2.77 percent on September 30, 2021 up from 2.21 per cent a year ago. Sequentially it was down from 2.88 per cent in June 2021. Net NPA ratio moved up to 0.8 per cent in September 2021 from 0.52 per cent a year ago. However, Net NPAs fell from 0.84 per cent in June 2021.

Its Advances grew at 10 per cent to Rs 2,20,808 crore in September 2021 as against Rs 2,01,247 crore in September 2020. Bank has given guidance for 14-16 per cent growth in credit for FY22.

The second quarter of this financial year witnessed economic activity gradually improving with easing mobility restrictions, rising pace of vaccination and supportive fiscal and monetary measures. As the risks from Covid continue to subside, the Bank is well positioned to maintain the growth momentum, Kathpalia added.

The deposits were up 21 per cent to Rs 2,75, 288 crore in September 2021 from Rs 2,27,884 crore in September 2020.

Its capital Adequacy ratio stood at 17.37 per cent as of end of September 2021.