IndusInd Bank Q2 Results: Profit Up 57% On Lower Provisions, Higher Core Income
Private lender IndusInd Bank Ltd.'s consolidated second-quarter net profit rose by more than half owing to lower provisions and higher core income.
Its consolidated net profit grew 57.3% year-on-year to Rs 1,805.2 crore, according to an exchange filing. Standalone net profit for the quarter rose 60% year-on-year to Rs 1,787 crore. Analysts polled by Bloomberg had estimated a standalone net profit of Rs 1,740 crore for the second quarter.
Net interest income, or core income, for the bank improved 17.6% from a year earlier to Rs 4,302 crore. Other income rose 9.22% year-on-year to Rs 2,011 crore.
Asset quality for IndusInd Bank improved with gross non-performing asset ratio at 2.11% as of Sept. 30, compared with 2.35% as of June 30. Similarly, net NPA ratio improved 6 basis points quarter-on-quarter to 0.61%.
Provisions for the quarter fell 33% from a year ago to Rs 1,141 crore.
On Wednesday, the IndusInd Bank stock closed 0.4% lower compared with a 0.14% rise in benchmark Nifty 50.
The bank's total advances rose 18% year-on-year to Rs 2.6 lakh crore.
According to Sumanth Kathpalia, managing director and chief executive officer, this quarter saw the most amount of vehicle loan disbursements for the bank in its history.
While car loans have risen sharply, scooter loans have recovered too. The private sector lender's recently launched used car business also contributed to the rise in disbursements, Kathpalia told reporters in a conference call after the results were announced.
"We recently launched our home loan business and we have not advertised it much. We are aiming for a Rs 1,000 crore home loan book by March (2023). But we are expecting a Rs 10,000-12,000 crore home loan book in the next two years," Kathpalia said.
Total deposits rose 15% year-on-year to Rs 3.15 lakh crore. Current account savings account deposits rose to Rs 1.33 lakh crore, or 42% of total deposits, as of Sept. 30.
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