Private lender IndusInd Bank reported strong and in-line earnings during the first quarter of the financial year (Q1FY23). The bank’s both top and bottom lines grew double-digit year-on-year (YoY), whereas the asset quality improved during the quarter.
IndusInd Bank’s net profit for the quarter ended June 30, 2022, came at Rs 1,631 crore as compared to Rs 1,016 crores during the corresponding quarter of the previous year, up by 61 per cent YoY, while the Net Interest Income (NII) grew by 16 per cent to Rs 4,125 crore in June-end quarter of FY23, the private lender said in an exchange filing.
The Net Interest Margin (NIM) improved marginally by 10 basis points (bps) to 4.21 per cent from 4.2 per cent sequentially. In Q1FY22, the NIM came at 4.06 per cent.
The bank’s Gross NPA (non-performing assets) and Net NPA ratios improved to 2.35 and 0.67 per cent from 2.88 and 0.84 per cent YoY, respectively and PCR (provisioning coverage ration) stood at 72 per cent as of June 30, 2022.
Sumant Kathpalia, Managing Director & CEO, Induslnd Bank said: “The QIFY23 witnessed turbulent operating environment with interlinkages of inflation, reversal of accommodative monetary policy and Russia-Ukraine conflict playing out.”
“Our loan growth has accelerated to 18 from 12 per cent last quarter. Our vehicle and microfinance had the best Q1 disbursements in their history. Consumer and Corporate segments maintained steady growth. Retailisation of liabilities continues with 16 per cent growth in CASA, 17 per cent growth in Retail deposits as per LCR resulting in overall deposit growth of 13 per ent,” the MD & CEO said.