The Board of Directors of IndusInd Bank Limited approved the financial results of the Bank for the Quarter/ Year ended March 31, 2023, at their meeting held in Mumbai on Monday, April24, 2023.
NIM at 4.28%,Net NPAat 0.59%, Provision Coverage Ratio at71%, CapitalAdequacy Ratio(CRAR) at17.86%,CASA at 40% and Liquidity Coverage Ratio at123% underscore the strength of operating performance of the Bank and adequacy of capital.
CONSOLIDATED FINANCIAL RESULTS
The Bank’s financial results include the financial results of its wholly owned subsidiary, Bharat Financial Inclusion Limited (BFIL), a business correspondent (BC) of the Bank involved in originating small ticket MFI loans for the Bank andIndusInd Marketing and Financial Services Private Limited (IMFS),an associate of the Bank.
Profit & Loss Account for the Quarter ended March31, 2023
Net Profit for the quarter ended March 31, 2023was ₹2,043crores as compared to ₹1,401 croresduring corresponding quarter of previous year up by46% YoY.
Pre Provision Operating Profit (PPOP) at ₹3,758 crores for the quarter ended March 31, 2023 registered a growth of 11% over the corresponding quarter of previous year at ₹3,379crores.PPOP/Average Advances ratio for the quarter ended March 31, 2023 at 5.60%.
Net Interest Income for the quarter ended March 31, 2023at ₹4,669 crores, grew by 17% YoY and 4% QoQ. Net Interest Margin for Q4of FY23 stood at 4.28% against 4.20% for Q4 of FY 22and 4.27% for Q3 of FY23.
Yield on Assets stands at 9.20% for the quarter ended March 31, 2023 as against 8.28% for the corresponding quarter of previous year. Cost of Fund stands at 4.92% as against 4.08% for corresponding quarter of previous year.
Other income at ₹2,154crores for the quarter ended March31,2023as against ₹1,903croresfor the corresponding quarter of previous year, grew by 13% YoY. Core Fee grew by 27%YoY to ₹2,087crores as against ₹1,644crores for the corresponding quarter of previous year.
Operating expenses for the quarter ended March 31, 2023were ₹3,066crores as against₹2,509crores for the corresponding quarter of previous year, increased by22%.
Profit & Loss Account for yearended March 31, 2023
Net Interest Income for the year ended March 31, 2023 increased to₹17,592 crores, up by 17% from ₹15,001 crores previous year.
Fee income at ₹8,173 crores for the year ended March 31, 2023 over the previous year at₹7,345 crores.
For the year ended March 31, 2023, the Bank earned Total Income (Interest Income and Fee Income) of ₹44,541 crores as compared to₹38,167crores for the previous year.
Operating expenses for the year ended March 31, 2023 were ₹11,346 crores as against ₹ 9,311 crores for the previous year.
Pre Provision Operating Profit (PPOP) at ₹14,419crores for the year ended March 31, 2023 over the previous year at₹13,035crores.
Net Profit at₹7,443 crores for the year ended March 31, 2023 up by 55% over the previous year at₹4,805 crores.
Balance Sheet as of March 31, 2023
Balance sheet footage as on March 31, 2023 was₹4,57,837crores as against ₹4,01,967 crores as on March 31, 2022, marking growth of 14%.
Deposits as on March 31, 2023 were ₹ 3,36,120 crores as against ₹2,93,349crores, an increase of 15% over March 31, 2022. CASA deposits increased to ₹1,34,728 crores with Current Account deposits at ₹ 50,600 crores and Savings Account deposits at ₹84,128 crores. CASA deposits comprised 40% of total deposits as at March 31, 2023.
Advances as of March31, 2023 were ₹ 2,89,924 crores as against₹2,39,052crores, an increase of 21% over March 31, 2022.
ASSET QUALITY
The loan book quality remains stable. Gross NPAwere at 1.98% of gross advances as on
March31, 2023 as against 2.06% as on December31,2022.Net NPA were 0.59% of net advances as on March 31, 2023 as compared to 0.62% as on December31, 2022.
The Provision Coverage Ratio was consistent at 71% as at March 31, 2023.Provisions and contingencies for the quarter ended March 31, 2023 were₹4,487 crores as compared to₹6,602 crores for the corresponding quarter of previous year, reduced by 32% YoY. Total loan related provisions as on March 31, 2023were at₹7,324 crores (2.5% of loan book).
CAPITAL ADEQUACY
The Bank’s Total Capital Adequacy Ratio as per Basel III guidelines stands at 17.86% as on March 31, 2023, as compared to 18.42% as on March 31, 2022. Tier 1 CRAR was at16.37% as onMarch 31, 2023 compared to 16.80% as on March 31, 2022.Risk-Weighted Assets were at ₹3,37,036 crores as against ₹ 2,95,131crores a year ago.
NETWORK
As of March 31, 2023, the Bank’s distribution network included 2606 branches/ Banking outlets and 2878 onsiteand offsite ATMs, as against 2265Branches/ Banking outletsand 2767onsite and offsite ATMs as of March 31, 2022.The client base stood atapprox. 34 million as on March31, 2023.
Commenting on the performance, Mr. Sumant Kathpalia, Managing Director & CEO, IndusInd Bank said:
“Indian economy continues to be a bright spot in the otherwise weak global environment, supported by prudent monetary and fiscal policies. This was also reflected in the healthy momentum seen across businesses of our Bank. The loan growth accelerated to 21% YoY and retail deposit growth was at 19% YoY. The Bank’s profitability metrics maintained uptrend across Net Interest Margins, Return on Assets and Return on Equity. The quarterly Net Profit thus crossed ₹2,000 crore mark for the first time at ₹2,043 crores – up 4% QoQ and 46% YoY. The full year profit was at ₹7,443 crores – up 55% YoY and Net Worth of the Bank is in excess of Rs 50,000 crores at ₹52,848 crores. The GNPAs and NNPAs trended down to 1.98% and 0.59% respectively. The Bank also announced its next three-year strategy with Growth, Granularity and Governance as key pillars to achieve higher market share with diversification in risk. With stable macro-economic environment and recovery in key businesses, the bank is confident of achieving its growth ambitions.”