IndusInd Bank Q3 Results: Profit Rises 49.5% On Higher Income
The lender's net profit rose 49.5% year-on-year to Rs 1,241 crore in the quarter ended December.
IndusInd Bank Ltd.'s quarterly profit rose, owing to higher total income and lower provisions.
Net profit rose 49.5% year-on-year to Rs 1,241 crore, the private lender said in an exchange filing. Analysts polled by Bloomberg estimated the metric at Rs 1,264 crore.
Net interest income, or core income increased 11.4% over the preceding year to Rs 3,793.6 crore. Other income went up by 14% to Rs 1,877 crore.
Gross non-performing asset ratio fell by 29 basis points quarter-on-quarter to 2.48%. Similarly, net NPA ratio improved by 9 basis points sequentially to 0.71%.
Provisions for the quarter stood at Rs 1,654 crore, down 11% year-on-year.
"While the Covid remains a risk to watch out for, the implications of the recent wave on our businesses have been limited," Sumant Kathpalia, the lender's managing director and chief executive officer, said. "We're thus committed to executing our strategy quarter on quarter.”
IndusInd Bank's total advances as of Dec. 31 stood at Rs 2.28 lakh crore, up 10% year-on-year. Retail advances stood at Rs 1.23 lakh crore, while wholesale advances stood at Rs 1.05 lakh crore, indicating a retail-wholesale mix of 54:46%.
Total deposits rose 19% year-on-year to Rs 2.84 lakh crore. Low-cost current account savings account deposits as a ratio of total deposits stood at 42% at the end of the third quarter.
Microfinance Issues
IndusInd Bank has concluded its internal and external reviews of the issues at microfinance subsidiary Bharat Financial Inclusion Ltd., Kathpalia said.
"The final external review report is expected within two weeks. We believe that the outcome of the review is within the management guidance," he said. "There will be no financial loss to the bank owing to this issue."
However, the internal review did reveal staff accountability and process deviation issues, which will need to be fixed, he said.
Whistleblowers had alleged evergreening of loans in Bharat Financial, after the second Covid-19 wave in October 2021. The bank at the time had said that due to a technical glitch loans were disbursed to 84,000 microfinance accounts, without adequate customer consent. IndusInd Bank had pegged the amount involved to be Rs 34 crore at the time.
While addressing reporters on Saturday, Kathpalia said the bank has fully provided against loans worth Rs 179 crore involved in the case, as of Dec. 31.