IndusInd Bank Q4 net up 51% to Rs 1,401 cr on lower provisions, higher NII

Net interest income increased by 13% YoY and 5 per cent sequentially to Rs 3,985 crore

Private sector lender IndusInd Bank reported a 51 per cent jump in net profits in January-March quarter, aided by lower provisions and higher net interest income. Its net profit for the quarter totalled to Rs 1,401 crore compared to Rs 926 crore in the year ago period. Analysts at Bloomberg had estimated a net profit of Rs 1,405 crore.

Net interest income (NII) of the lender increased by 13 per cent year on year (YoY) and 5 per cent sequentially to Rs 3,985 crore. Other income rose 7 per cent YoY to Rs 1,905 crore. Net interest margin (NIM), a measure of profitability of lenders, for the quarter stood at 4.20 per cent against 4.13 per cent in the year ago period. Strong retail disbursements and falling cost of deposits led to increase in NIMs, the management said.

Provisions of the lender dropped 22 per cent YoY to Rs 1,463 crore. The bank had made provisions to the tune of Rs 1,654 crore in the previous quarter. Asset quality of the lender improved, with non-performing assets (NPA) of the lender dropping by 21 basis points sequentially to 2.27 per cent in Q4FY22. Net NPAs of the lender stood at 0.64 per cent, dropping 7 basis points sequentially.

Advances of the lender grew by 12 per cent YoY and 5 per cent sequentially to Rs 2.39 trillion. The growth in the loan book was driven by growth in the consumer and corporate segment. In the reporting quarter, the bank saw healthy disbursements in the retail portfolio. It is also looking to launch a mortgage finance product in FY23 and scale up its tractor financing business. The bank is also planning to grow its merchant acquiring business, with a focus on small business going ahead.

Deposits of the bank grew 3 per cent sequentially and 15 per cent YoY to Rs 2.93 trillion.