IndusInd Bank has announced its financial results for the quarter and half-year ending on September 30, 2024. The results show notable growth in deposits, loans, and income despite an increase in provisions and challenging conditions in the banking sector.
Key Performance Highlights for Q2 FY 2024-25
- Deposits: Crossed ₹4 trillion, growing by 15% year-on-year to reach ₹4,12,317 crores.
- Loans: Increased by 13% year-on-year to ₹3,57,159 crores.
- Net Interest Income (NII): Rose 5% to ₹5,347 crores.
- Net Interest Margin (NIM): Recorded at 4.08%, down from 4.29% in Q2 FY 2023-24.
- Asset Quality: Gross NPA at 2.11% and Net NPA at 0.64%, with a Provision Coverage Ratio (PCR) of 70%.
- Net Profit: Posted at ₹1,331 crores, reflecting a decline from ₹2,202 crores in Q2 FY 2023-24 due to increased provisions.
Also Read: IndusInd Bank’s shares fall by 19%, MCap decreased due to poor Q2 Results
Financial Overview
The results were approved by the Bank’s Board of Directors in a meeting held on October 24, 2024, in Mumbai. The Bank’s capital adequacy and liquidity positions remained robust, with a Capital Adequacy Ratio (CAR) of 16.51%, CASA ratio of 35.87%, and a Liquidity Coverage Ratio of 118%, underscoring its strong operating performance and capital adequacy.
Consolidated Financial Results
IndusInd Bank’s consolidated results include its subsidiary Bharat Financial Inclusion Limited (BFIL), which focuses on microfinance, and its associate IndusInd Marketing and Financial Services Private Limited (IMFS).
Profit & Loss Details for Q2 FY 2024-25
- Net Interest Income: ₹5,347 crores, up 5% year-on-year.
- Net Interest Margin: At 4.08%, lower than last year’s 4.29% due to reduced microfinance loans.
- Other Income: Totaled ₹2,185 crores, slightly down from ₹2,282 crores last year.
- Operating Expenses: ₹3,932 crores, up from ₹3,450 crores year-on-year.
- Pre-Provision Operating Profit (PPOP): ₹3,600 crores, down from ₹3,909 crores last year.
- Net Profit: ₹1,331 crores, down from ₹2,202 crores in Q2 FY 2023-24, affected by higher provisions.
Half-Year Performance (H1 FY 2024-25)
- Net Interest Income: ₹10,755 crores, showing an 8% increase year-on-year.
- Fee Income: Reached ₹4,627 crores, up by 3%.
- Total Income: ₹29,860 crores, compared to ₹26,469 crores in the previous year.
- Operating Expenses: ₹7,830 crores, up from ₹6,696 crores last year.
- Pre-Provision Operating Profit (PPOP): ₹7,552 crores, slightly down from ₹7,740 crores.
- Net Profit: ₹3,502 crores, down from ₹4,326 crores in H1 FY 2023-24.
Also Read: Net Profit of all Banks in September 2024 Quarter
Balance Sheet as of September 30, 2024
- Balance Sheet Footage: ₹5,43,407 crores, up 14% from ₹4,77,922 crores.
- Deposits: ₹4,12,397 crores, marking a 15% increase year-on-year.
- CASA deposits grew to ₹1,47,944 crores, comprising 35.87% of total deposits.
- Advances: ₹3,57,159 crores, up by 13% from last year.
Asset Quality
The bank’s loan portfolio remains stable, with a Gross NPA of 2.11% and Net NPA of 0.64% as of September 30, 2024. Provision Coverage Ratio remains strong at 70%. Total loan provisions were ₹8,412 crores, representing 2.4% of the loan book.
Capital Adequacy
IndusInd Bank’s Total Capital Adequacy Ratio as per Basel III norms stands at 16.51%, compared to 18.21% last year, with Tier 1 Capital at 15.21%. This highlights the bank’s solid financial standing and ability to manage risk.
Network Expansion
As of September 30, 2024, IndusInd Bank operates 3,040 branches and 3,011 ATMs, reaching a client base of 41 million across India. The bank continues to expand its footprint, especially in rural and semi-urban areas.
CEO’s Statement on Performance
IndusInd Bank’s Managing Director & CEO, Mr. Sumant Kathpalia, expressed satisfaction with the bank’s performance despite global uncertainties. He emphasized the focus on securing deposits, managing secured loans, and maintaining strong asset quality. The CEO also noted that the bank’s capital and liquidity positions remain above regulatory requirements, positioning it for future growth aligned with India’s economic progress.
About IndusInd Bank
IndusInd Bank, a leading private sector bank, has a legacy of 30 years and serves a wide range of customers, from individuals to large corporations. The bank offers an array of financial products, including microfinance, personal loans, credit and debit cards, and various loan types. With advanced digital banking and innovation at its core, IndusInd Bank strives to redefine banking services, including unique offerings like ‘INDIE’ digital banking and ‘Indus PayWear’ for wearable payments.
Domestic and International Ratings
Domestic Ratings:
- CARE A1+ for Certificate of Deposits
- CRISIL AA+ for Infrastructure Bonds
- CRISIL A1+ for Certificate of Deposit program
International Ratings:
- IND AA+ for Senior Bonds and Tier 2 Bonds by India Ratings and Research
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