IndusInd Bank Q2 Results: Net Profit Up 73% YoY

IndusInd Bank Ltd.’s quarterly net profit rose on higher interest income and lower provisions.

Net profit for the private bank increased 73% year-on-year to Rs 1,146 crore in the three months ended September, according to its exchange filing. That compares with the Rs 1,028-crore consensus estimate of analysts tracked by Bloomberg.

Its net interest income, or core income, rose 11.6% over a year earlier to Rs 3,658 crore. Other income, too, rose to Rs 1,838 crore, up 18.2% from a year ago.

Asset quality for IndusInd Bank improved on a sequential basis. Its gross non-performing asset ratio stood at 2.77% compared with 2.88% as of June. Net NPA, too, improved 4 basis points to 0.8%.

Gross slippages worth Rs 2,658 crore came largely from the bank's vehicle finance and microfinance books, said Sumanth Kathpalia, managing director & chief executive officer at IndusInd Bank.

Under the first Covid restructuring window announced by the Reserve Bank of India in August, IndusInd Bank had restructured loans worth Rs 2,984 crore. Of this, Rs 74 crore worth of loans have turned NPAs as of Sept 30. Under the second window announced in May this year, the private bank had restructured loans worth RS 2,677 crore.

Provisions for the quarter stood at Rs 1,703 crore, down 13% over a year earlier.

Business Growth

As of Sept 30, outstanding advances rose 9.7% year-on-year to Rs 2.2 lakh crore.

The bank's deposit base rose 21% to Rs 2.75 lakh crore. Current account savings account deposits stood at Rs 1.16 lakh crore.

Shares of IndusInd Bank ended the day's trading down 1.64% compared with the benchmark Nifty 50's 0.31% decline.