IndusInd Bank’s net profit shoots up 57% YoY on lesser provisioning

IndusInd Bank's net profit was Rs 1,805.3 crore in Q2FY23 against Rs 1,146.7 crore in Q2FY22.

IndusInd Bank posted a 57 percent year-on-year rise in net profit this September quarter.

Its net profit was Rs 1,805.3 crore in Q2FY23 against Rs 1,146.7 crore in Q2FY22. The private lender’s net profit rose 10.6 percent quarter-on-quarter from Rs 1,631 crore in Q1FY23. Operating profit has gone up 10% YoY and 3% QoQ to Rs 3,554 crore.

Also read: Does IndusInd Bank deserve its valuation boost? Yes, but conditions apply

Provisions fell 33 percent YoY to Rs 1,141 crore in Q2FY23 from Rs 1,706.9 crore in Q2FY22, and it fell 8.7 percent QoQ from Rs 1,250.9 crore in Q1FY23.

Its gross NPA as a percentage of its total loan book fell to 2.11 percent in Q2FY23 from 2.77 percent in Q2FY22, and from 2.35 percent in Q1FY23. The value of Gross NPA was Rs 5,567 crore in Q2FY23, which was a 10.8 percent YoY fall from Rs 6,245 crore in Q2FY22 and a 6.1 percent QoQ fall from Rs 5,932.9 crore.

Its net NPA was 0.61 percent, which was a YoY fall of 19 bps and a QoQ fall of 6 bps.

It posted a net interest income of Rs 4,302 crore this quarter, which is an 18 percent YoY rise and 4 percent QoQ increase. Analysts tracking the private lender had projected 15-20 percent YoY growth in NII for Q2FY23.

IndusInd Bank’s net interest margin was at 4.24 percent, which is a 17 bps YoY rise and a 3 bps QoQ rise.

Return on Assets have improved 51bps YoY and 7bps QoQ to 1.8%, and return on equity has increased 417 bps YoY and 101 bps QoQ to 14.45%.

Its loans went up 18% YoY and 5% QoQ to Rs 2,60,129 crore in Q2FY23 and its deposits went up 15% YoY and 4% QoQ to Rs 3,15, 532 crore in this quarter. Its CASA has gone up 15% YoY and 2% QoQ to Rs 1,33,525 crore and its term deposits have gone up 14% YoY and 6% QoQ to Rs 1,82,007 crore.

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