IndusInd Bank Q3 PAT tumbles 39% YoY to Rs 1,401 crore in FY25

The private lender's standalone net profit tumbled 39.01% to Rs 1,401.28 crore in Q3 FY25 as against Rs 2,297.85 crore reported in Q3 FY24.

However, total income grew by 8.46% year on year to Rs 15,151.01 crore in the quarter ended 31 December 2024.

The banks 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 for the bank, and IndusInd Marketing and Financial Services Private (IMFS), an associate of the bank.

IndusInd Bank's consolidated net profit tanked 39.06% to Rs 1,402.33 crore on an 8.50% jump in total income to Rs 15,155.80 crore in Q3 FY25 over Q3 FY24.

Net interest income (NII) stood at Rs 5,228 crore in Q3 FY25, down 1% on a YoY basis. Net interest margin (NIM) in Q3 FY25 was at 3.93% as compared to 4.29% registered in Q3 FY24.

The bank's pre-provision operating profit (PPOP) stood at Rs 3,601 crore in the December quarter, down 10.91% from Rs 4,042 crore reported in the same period a year ago.

Operating expenses during the quarter were at Rs 3,982 crore, up 9% YoY.

On the asset quality front, the bank's gross non-performing assets (NPAs) stood at Rs 6,377.05 crore as on 31 December 2024, as against Rs 8,375.29 crore as on 31 December 2023.

The gross NPA was at 2.25% of gross advances as on 31 December 2024 as against 1.92% as on 31 December 2023. The net NPA stood at 0.68% of net advances as on 31 December 2024 as compared to 0.57% as on 31 December 2023.

The provision coverage ratio was consistent at 70% as at 31 December 2024. Provisions and contingencies for the quarter ended 31 December 2024 were at Rs 1,744 crore as compared to Rs 969 crore for the corresponding quarter of the previous year, increased by 79.97% YoY. Total loan-related provisions as on 31 December 2024 were at Rs 8,792 crore (2.4% of loan book).

Deposits as on 31 December 2024 stood at Rs 4,09,438 crore as against Rs 3,68,793 crore, an increase of 11% over 31 December 2023. CASA deposits increased to Rs 1,42,818 crore with current account deposits at Rs 45,872 crore and savings account deposits at Rs 96,946 crore. CASA deposits comprised 35% of total deposits as at 31 December 2024.

Advances as of 31 December 2024 was at Rs 3,66,889 crore as against Rs 3,27,057 crore, registering a growth of 12% as compared to 31 December 2023.

The banks total capital adequacy ratio as per Basel III guidelines stood at 16.49% as on 31 December 2024, as compared to 17.86% as on 31 December 2023. Tier 1 CRAR was at 15.18% as on 31 December 2024, compared to 16.47% as on 31 December 2023.

Sumant Kathpalia, MD & CEO, IndusInd Bank, said: The Indian macro indicators suggest stability in economic activity levels after the slowdown in Q2. This was also reflected in the sharp recovery in the retail disbursements of the bank. Consequently, the banks loan book grew by 12% YoY.

The bank maintained momentum on retail deposits growing at 14% YoY and overall deposits growing at 11% YoY. The operating profits and net profits were stable at Rs 3,601 crore (flat QoQ) and Rs 1402 crore (up 5% QoQ), respectively.

The Bank remains watchful of asset quality trends in unsecured businesses and will calibrate growth accordingly. The Bank is well positioned to benefit from any fiscal and regulatory measures supporting rural as well as overall economic activity through its vehicle and microfinance businesses."

IndusInd Bank caters to both consumer and corporate customers. As of 31 December 2024, the banks distribution network included 3,063 branches/banking outlets and 2,993 onsite and offsite ATMs, as against 2,728 branches/banking outlets and 2,939 onsite and offsite ATMs as of 31 December 2023. The client base stood at 42 million as on 31 December 2024.

Shares of IndusInd Bank rallied 3.66% to end at Rs 992.15 on the BSE.

Powered by Capital Market - Live News