IndusInd Bank gains after Q4 PAT spurts to Rs 876 cr

IndusInd Bank rose 2.79% to Rs 961 after the bank reported 190.2% jump in net profit to Rs 875.95 crore in Q4 FY21 from Rs 301.84 crore in Q4 FY20.

Total income during the quarter increased by 0.4% year-on-year (YoY) to Rs 9199.48 crore. Operating profit before provisions and contingencies in the fourth quarter was at Rs 3061.53 crore, up by 7.9% from Rs 2836.17 crore reported in the same period last year.

Provisions and contingencies declined by 23.5% to Rs 1865.69 crore in Q4 FY21 over Q4 FY20.

On the asset quality side, gross non-performing assets (NPAs) stood at Rs 5,794.99 crore as on 31 March 2021 as against Rs 3,650.66 crore as on 31 December 2020 and Rs 5,146.74 crore as on 31 March 2021.

The gross NPA ratio surged to 2.67% as on 31 March 2021 from 1.74% as on 31 December 2020 and 2.45% as on 31 March 2020.

The net NPA ratio increased to 0.69% as on 31 March 2021 from 0.22% as on 31 December 2020 and 0.91% as on 31 March 2020.

On a consolidated basis, IndusInd Bank reported 193% rise in net profit to Rs 926 crore on 6% increase in total income to Rs 5,315 crore in Q4 FY21 over Q4 FY20.

The bank's consolidated financial results include the financial results of its wholly owned subsidiary, Bharat Financial Inclusion (BFIL), a business correspondent (BC) of the bank involved in originating small ticket MFI loans and associate entity, IndusInd Marketing & Financial Services (IMFS).

Net Interest Income for the quarter ended 31 March 2021 at Rs 3,535 crore were higher by 9% earned during the quarter ended 31 March 2020 at Rs 3,232 crore. Net Interest Margin stood at 4.13% as on 31 March 2021.

Operating expenses grew marginally to Rs 2,186 crore in Q4 March 2021as against Rs 2,148 crore in Q4 March 2020.

The bank reported 34% drop in consolidated net profit to Rs 2,930 crore on a 5% rise in total income to Rs 20,029 crore in the year ended 31 March 2021 as compared to the year ended 31 March 2020.

Total deposits as of 31 March 2021 were Rs 2,55,870 crore as against Rs 2,02,027 crore, an increase of 27% over 31 March 2020.

CASA deposits stood at Rs 1,06,791 crore with current account deposits at Rs 35,726 crore and saving account deposits at Rs 71,065 crore. CASA deposits comprised of 42% of total deposits as of 31 March 2021.

Advances as of 31 March 2021 were Rs 2,12,596 crore, up by 2.8% from Rs 2,06,783 crore as at 31 March 2020.

Total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 17.38% as on 31 March 2021 as against 15.04% as on 31 March 31, 2020.

Commenting on the performance, Sumant Kathpalia, managing director & CEO, IndusInd Bank, said: "The Indian economy showed significant resilience against the impact of COVID-19 and had begun recovering in a gradual manner. While that momentum may have reduced due to the onset of a second wave, the mass vaccination drive should help getting things back on track. We look forward to participating in this journey with a strengthened balance sheet during the year. During FY21, as well as Q4, the Bank witnessed healthy growth in its top line as well as in its pre-provision operating profits.

The bank has conservatively built a strong provision cover 75% resulting in a net NPA of 0.69% compared to previous year of 0.91%. The bank is also carrying significant buffers outside these provisions as a prudent measure. Our areas of domain expertise such as vehicle finance, micro-finance and diamond finance have witnessed strong disbursements and we expect the growth to become further broad-based in the current financial year."

IndusInd Bank caters to the needs of both consumer and corporate customers. As on 31 March 2021, the bank has 2,015 branches/ banking outlet and 2,872 ATMs spread across geographical locations of the country.

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