Business Standard

Indusind Bank Q4 net up 46% at Rs 2043 cr, deposits grew 15% to Rs 3.36 trn

Private sector lender says it will expand its branch network to gain consumer confidence and help home loan business

indusind bank

BS Reporter Mumbai

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Private sector lender Indusind Bank reported on Monday a 46 per cent increase in net profit at Rs 2,043 crore for the quarter ended March 31, 2023 on the back of margin expansion and compared to the year-ago period.

Net interest income grew 17 per cent to Rs 4,669 crore while net interest margin improved to 4.28 per cent against 4.20 per cent for Q4 of FY22 and 4.27 per cent for Q3 of FY23.

Yield on assets was at 9.20 per cent for the quarter as against 8.28 per cent for the corresponding quarter of previous year. Cost of fund stands was 4.92 per cent as against 4.08 per cent in the year-ago period.

The bank posted a loan growth of 21 per cent on year to Rs 2.9 trillion while deposits grew by 15 per cent to Rs 3.36 trillion.

Asset quality remained stable with gross non performing assets (NPA) at 1.98 per cent of gross advances as on March 31, 2023 as against 2.06 per cent as on December 31, 2022.

Net NPA were 0.59 per cent of net advances as on March 31, 2023 as compared to 0.62 per cent as on December 31, 2022. The bank had a provision coverage ratio of 71 per cent at the end of the March.

The bank, which is planning to increase the retail mix of the asset book to 55-60 per cent over the medium term, said that its branch network will increase to 3,250 from 2,606.

“We continue to believe that branches play a very important role in the client’s journey. Even if the clients are not walking in, all our market surveys show it does give the client the confidence to see a brick-and-mortar branch. We also believe that our branch expansion is linked to our home [loan] market strategy,” said Sumant Kathpalia, managing director and CEO of IndusInd Bank during the post earnings media interaction.

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First Published: Apr 24 2023 | 7:10 PM IST

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