INDUSIND BANK Q3 RESULTS 2024: NET PROFIT RISES, ASSET QUALITY HEALTHY

IndusInd Bank reported its December quarter numbers on Thursday. Earlier in the day, IndusInd Bank's share price closed at Rs 1,612.90, down 1.89% on NSE. Let us look at IndusInd Bank's Q3FY24 quarterly numbers in detail.

About IndusInd Bank

IndusInd Bank is a leading private sector bank, offering a wide range of banking and financial services to individuals and businesses. The bank focuses on delivering personalized and innovative banking solutions while maintaining a strong commitment to customer satisfaction.

Crucial Parameters

• Total Market Cap: Rs 1,25,459.87 crore
• PE Ratio: 15.39
• ROE: 14.32
• 52 Week High: Rs 1,694.35

Share Price Movement

In the last six months, the bank has delivered exceptional returns of 15.99% returns. In the one-year time frame, the bank has delivered returns more than the benchmark index, rising 31.09%. However, in the five-year period, the share price has only increased less than 10%.

How has IndusInd Bank performed in Q3FY24?

Let us look at how the bank has performed in the December quarter:

Net Profit: Net Profit for the quarter ended December 31, 2023, was Rs 2,301 crore as compared to Rs 1,967 crore during the corresponding quarter of the previous year, up by 17% YoY. Sequentially, the net profit has increased from 2,202 crore, up 5%.

Net Interest Income (NII): It measures the difference between the interest earned on loans and investments and the interest paid on deposits and borrowings. NII represents the core income generated by a bank's lending and investment activities. 

The bank reported an NII of Rs 5,296 crore, which increased by 18% as compared to Rs 4,488 crore reported in the corresponding quarter of the previous fiscal. Sequentially, NII increased by 4%. Net Interest Margin for Q3FY24 stood at 4.29% against 4.27% for Q3FY23.

Other Income: Other income stood at Rs 2,282 crore for the December quarter as against Rs 2,084 crore for the corresponding quarter of the previous year. It grew by 15% YoY. Bank's operating expenses for Q3FY24 were Rs 3,650 crore as against Rs 2,885 crore for the corresponding quarter of the previous year, which increased by 27%.

Asset Quality: Gross Net Performing Asset (NPA) was at 1.92% of gross advances as of December 31, 2023, as against 1.93% in the September quarter. Net NPA was 0.57% of net advances as of December 31, 2023, marginally down from 0.62% in the year-ago period. 

Deposits & Advances: The balance sheet as of December 31, 2023, was Rs 4,88,865 crore, showing growth of 10% YoY and 2% sequentially. Deposits as of December 31, 2023, were Rs 3.69 lakh crore as against Rs 3.26 lakh crore, an increase of 13% over December 31, 2022. CASA deposits increased to Rs 1,41,924 crore with Current Account deposits at Rs 50,044 crore and Savings Account deposits at Rs 91,880 crore. CASA deposits comprised 40% of total deposits as of December 31, 2023. Advances as of December 31, 2023, were Rs 3,27,057 crore as against Rs 2,72,754 crore, an increase of 20% over December 31, 2022. 

Capital Adequacy: The bank’s Total Capital Adequacy Ratio as per Basel III guidelines stands at 17.86% as of December 31, 2023, as compared to 18.21% in the previous quarter. Tier 1 CRAR was at 16.47% at the end of the December quarter, as compared to 16.75% in the previous quarter. Risk-weighted assets were at Rs 3,70,412 crore as against Rs 3,50,376 crore in the previous quarter.

Management Commentary: "Indian economy continues to show robust momentum delivering real GDP growth of 7.6 percent in Q2. The regulatory and fiscal policies have been effectively mitigating geo-political uncertainties in the global economy. IndusInd Bank too continues to participate in the healthy economic outlook.", Mr. Sumant Kathpalia, Managing Director & CEO.