Private sector lender IndusInd Bank on January 29 reported a massive 36.2 percent year-on-year growth in standalone profit driven by lower provisions compared to year-ago period with improvement in asset quality.
Standalone profit for the December 2021 quarter came in at Rs 1,161.3 crore, higher compared to Rs 852.76 crore in corresponding period last fiscal.
Net interest income, the difference between interest earned and interest expended, grew by 11.4 percent to Rs 3,793.57 crore in Q3FY22, with 10 percent growth in advances and 19 percent increase in deposits YoY.
The Mumbai-based bank says its balance sheet footage, as on December 31, 2021, at Rs 3,90,564 crore showed a growth of 14 percent over a year-ago period. "Deposits base increased to Rs 2,84,484 crore as of December 2021 with 19 percent YoY growth, and advances at Rs 2,28,583 crore registered a 10 percent year-on-year growth in the same period with healthy growth in most of the customer segments."
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"Net interest margin improved to 4.10 percent (from 4.07 percent in Q2FY22) supported by continued reduction in cost of deposits. While the Covid remains a risk to watch out for, the implications of the recent wave on businesses have been limited," says Sumant Kathpalia, Managing Director & CEO at IndusInd Bank.
Provisions and contingencies at Rs 1,654 crore for the December 2021 quarter fell 10.76 percent compared to year-ago quarter and declined 2.89 percent compared to previous quarter, as per the BSE filing by IndusInd Bank.
The provision coverage ratio was consistent at 72 percent as the end of December 2021 as well as September 2021, says the bank. "Total loan related provisions as on December 2021 were at Rs 8,486 crore (3.71 percent of loan book)."
On the asset quality front, the bank says gross non-performing as a percentage of gross advances declined to 2.48 percent at the end of December 2021, down from 2.77 percent as of September 2021, and net NPA dropped to 0.71 percent from 0.8 percent in the same period.
IndusInd Bank clocked 10 percent growth in other income (non-interest income) year-on-year, coming in at Rs 1,876.78 crore in three months period ended December 2021.Pre-provision operating profit grew by 7.8 percent year-on-year to Rs 3,205.07 crore in Q3FY22, impacted by rise in operating expenses that increased 15.3 percent YoY to Rs 2,465.3 crore.