With a standalone net profit of Rs 2040.51 crore for the March quarter of 2022–23—up 49.88 per cent from the previous year’s number of Rs 1361.37 crore—IndusInd Bank exceeded predictions on April 24. Brokers had anticipated a 43.3 per cent increase in the bottom line year over year. The lender’s net interest income totalled Rs. 4669.46 crores, up 17% over the previous year. The bank’s board also proposed a dividend payment at a rate of Rs. 14 per share, subject to shareholder approval at the next annual general meeting.
The company said in a regulatory filing that retail enterprises had increased their loan growth. Its retail loans increased by 7% QoQ, increasing its share of retail loans to 54%. Mid- and small-sized businesses contributed 7% QoQ of the corporate growth, while large businesses contributed 5% QoQ. During Q4FY23, core fee income increased by 27% YoY and 8% QoQ. Retail consumer banking fees made up about 74% of all fee income in the fourth quarter of FY23. Net interest margins increased by 8 basis points year over year and 1 basis point quarterly to 4.28 per cent. Return on assets (RoA) increased by 3 basis points to 1.90 per cent, or 39 basis points YoY.
The bank’s asset quality also increased. Both the gross and net non-performing assets (NPA) decreased to 1.98 and 0.59 per cent, respectively. The bank retained loan-related provisions worth Rs 7,324 crore, or 2.5% of the loans. A specific provision of Rs 4,041 crore was made for non-performing accounts, along with floating provisions of Rs 70 crore, Rs 1,900 crore for standard contingencies, and Rs 1,313 crore for standard asset provisions other than contingencies. Total loan-related provisions made up 126 per cent of GNPA, and the provision coverage ratio was 71 per cent.
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