IndusInd Bank Q3 Results: Net Profit Jumps 58%, NII Rises 18.5%

The bank's consolidated net profit for the third quarter of FY23 stood at Rs 1,963 crore.

<div class="paragraphs"><p>An IndusInd Bank branch in Mumbai. (Photo: Vijay Sartape/BQ Prime)</p></div>
An IndusInd Bank branch in Mumbai. (Photo: Vijay Sartape/BQ Prime)

Private lender IndusInd Bank Ltd. saw its consolidated net profit rise 58% year-on-year in the quarter ended December, on account of higher core income and lower provisions.

The bank's consolidated net profit for the third quarter of FY23 stood at Rs 1,963 crore, compared to Rs 1,241 crore during the same period last year.

IndusInd Bank's standalone net profit also surged 69% to Rs 1,959 crore in the third quarter of FY23. Analysts polled by Bloomberg had estimated a net profit of Rs 1,885 crore for the quarter.

Consolidated net interest income, or core income, for the bank rose 18.5% from a year ago and stood at Rs 4,495 crore. Other income, too, rose 11% year-on-year to Rs 1,877 crore.

IndusInd Bank's deposits jumped 14% year-on-year in Q3 FY23 and stood at Rs 3.25 lakh crore. The bank's CASA deposits grew by 14% year-on-year to Rs 1.36 lakh core.

The bank's consolidated advances also jumped 19% year-on-year to Rs 2.72 lakh crore. IndusInd Bank's vehicle loan book and corporate loan book grew by 18% and 20% year-on-year, respectively.

"Our focus has been to grow the small and mid-corporate segment," Sumant Kathpalia, chief executive at IndusInd Bank, said during the Q3 results press conference on Jan. 18.

The bank's consolidated net interest margin for the quarter rose 16 basis points year-on-year and stood at 4.27%. The bank's net interest margins are expected to stay in the range of 4.15%-4.25%, Kathpalia said.

Gross non-performing asset ratio for the bank, on a consolidated basis, fell by 5 basis points sequentially to 2.06%. The bank's net NPA stood at 0.62% for the quarter, as compared to 0.61% last year.

Of IndusInd Bank's fresh additions to non-performing assets worth Rs 1,467 crore, 91% came in from the consumer segment. The fresh additions were largely related to commercial vehicle loans and the bank's microfinance operations,.

Provisions for the quarter fell 35.6% year-on-year to Rs 1,064 crore.

While IndusInd Bank maintains partnerships with multiple lending-focused fintechs, its experience in the SME-focused segment hasn't been as expected, Kathpalia said on the call. "Quality of the book has not been up to the mark," Kathpalia said.

The bank is also planning to tie up with neobanking fintechs in the future, he said.

On Wednesday, shares of IndusInd Bank closed 0.70% lower at a price of Rs 1,221.70 per share, even as the benchmark Nifty index ended the day 0.53% higher.