IndusInd Bank jumped 9.10% to Rs 444, extending gains for second day after the company announced Q4 results after market hours yesterday, 27 April 2020.
Shares of the private lender have added 15.95% in two sessions from its recent closing low of Rs 382.90 recorded on 24 April 2020.IndusInd Bank's consolidated net profit fell 12.32% to Rs 315.25 crore on 21.30% rise in total income to Rs 9,158.80 crore in Q4 March 2020 over Q4 March 2019.
Net Interest Income during Q4 March 2020 increased to Rs 3,231.19 Crore, up by 44.74% from Rs 2,232.38 Crore for Q4 March 2019. Net Interest Margin for Q4 March 2020 improved to 4.25%from 4.15% during Q3 December 2019 and 3.59% during Q4 March 2019.
Pre Provision Operating Profit (PPOP) at Rs 2,856.72 crore for Q4 March 2020 grew by 38.20% over the corresponding quarter of previous year. PPOP/Assets ratio for Q4 March 2020 stood at 3.84% compared to 3.20% in the corresponding Q4 March 2019.
Total deposits as of 31 March 2020 were Rs 2,02,026.99 crore, an increase of 3.67% over 31 March 2019. CASA deposits stood at Rs 81,557.02 crorewith current account deposits at Rs 28,427.19 crore and saving account deposits at Rs 53,129.83 crore. CASA deposits comprised 40.37% of total deposits as of 31 March 2020. Total advances as of 31 March 2020 were Rs 2,06,783.16 crore, an increase of 10.94% over 31 March 2019.
The loan book quality was stable. The ratio of gross NPAs to gross advances stood at 2.45% as on 31 March 2020 as against 2.18% as on 31 December 2019 and 2.10% as on 31 March 2019. The ratio of net NPAs to net advances stood at 0.91% as on 31 March 2020 as against 1.05% as on 31 December 2019 and 1.21% as on 31 March 2019. The Provision Coverage Ratio increased to 63.34% in Q4FY20 from 43.04% in Q4FY19.
IndusInd Bank said that there is a high level of uncertainty about the duration of the lockdown and the time required for things to get normal. On the basis of an internal assessment, the bank has made a counter cyclical buffer or floating provision of Rs 260 crore.
Further, on account of the three-month moratorium offered to borrowers, the bank has also set aside Rs 23 crore during the quarter. The RBI has mandated banks to make provisions for 10% of the outstanding loan on moratorium in two tranches of 5% each in the March and June quarter.
The bank's total capital adequacy ratio (CAR) as per Basel III guidelines was at 15.04% as on 31 March 2020 as compared to 14.16% as on 31 March 2019.
Commenting on the performance, Sumant Kathpalia, Managing Director & CEO, IndusInd Bank said: During FY20, as well as Q4, the Bank has witnessed healthy growth in its toplineas well as in its pre-provision operating profits. The Bank's CRAR remains strong. PCR has also improved significantly. During the quarter, there was a considerable slowdown in economic activities following the outbreak of COVID-19 which did have an impact on business volumes across sectors. However, given the Bank's long operating history, we have seen several business cycles and have always demonstrated an ability to manage our portfolios effectively in such times, and emerge stronger. We are now pushingforward into FY21 basis our strong belief in new opportunities in the banking markets, especially in rural India, which will be one of the big pillars of our growth in the near future."
On a consolidated basis, net profit rose 35.07% to Rs 4,458.18 crore on 28.05% rise in total income to Rs 35,735.50 crore in the year ended March 2020 over the year ended March 2019.
IndusInd Bank caters to the needs of both consumer and corporate customers. As of 31 March 2020, the bank's distribution network included 1,911 branches/banking outlets and 2,760 onsite & offsite ATMs across 751 geographic locations, as against 1,665 branches/banking outlets and 2,545 onsite & offsite ATMs across 736 geographic locations as of 31 March 2019.
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