IndusInd Bank's profit jumped in the fourth quarter as provisions fell and core income improved.
Consolidated net profit for the lender increased 51.25% year-on-year to Rs 1,400.6 crore in the quarter ended March, according to its exchange filing. That compares with the Rs 1,405-crore consensus estimate of analysts tracked by Bloomberg.
Net interest income, or core income, rose 13% over the year earlier to Rs 3,985 crore. Other income stood at Rs 1,905 crore, up 7%.
Asset Quality And Provisions
The bank's asset quality also improved during the period.
Its gross non-performing asset ratio stood at 2.27%, 21 basis points lower sequentially. Net NPA ratio, too, dropped 7 basis points over the preceding quarter to 0.64%.
The Russia-Ukraine crisis has been impacting the bank's diamond lending portfolio.
"Russia is a large exporter of rough diamonds, which is impacting businesses here. However, what we are seeing now is not a credit impact, but a demand impact. Even the fuel price is not showing up in our vehicle finance portfolio," said Sumant Kathpalia, managing director and chief executive officer at IndusInd Bank.
Provisions for the January-March period stood at Rs 1,463 crore, down 21.5% year-on-year. The bank's provisions coverage ratio stood at 72% as of March.
Business Growth
IndusInd Bank's total deposits stood at Rs 2.93 lakh crore at the end of the fourth quarter, up 15% year-on-year. Low-cost current account, savings account deposits comprised 43% of total deposits.
Total advances as of March stood at Rs 2.39 lakh crore, up 12% from a year ago. Consumer finance loans constituted 54% of the book, while the wholesale book constituted 46%.
The bank will be launching a new mortgage finance product in FY23, Kathpalia told reporters over a conference call on Friday, without giving details.
"We are also scaling up our tractor financing business. Our merchant finance business is also growing... We will be growing our affluent business on the liabilities side," he said.
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