IndusInd Bank Q3 Results: Profit jumps 58% to Rs 1,964 crore as margin improves; asset quality stable

IndusInd Bank on Wednesday reported a net profit of Rs 1,964 crore for the October-December period, marking an increase of 58 per cent compared with the corresponding period a year ago. The Mumbai-based private sector lender's net interest income -- or the difference between interest earned and interest paid -- increased 18 per cent on a year-on-year basis to Rs 4,495 crore, according to a regulatory filing.

The bank's net interest margin -- a key measure of profitability for financial institutions -- improved by 17 basis points to 4.27 per cent compared with the year-ago period.

“Indian economy continues to be a bright spot in the world even though the external macros are challenging. With strong fundamentals, the Indian banking sector has been resilient and continues to aid in the economic recovery. IndusInd Bank too continued its growth momentum across metrics," said Sumant Kathpalia, Managing Director and CEO, IndusInd Bank.

Its pre-provision operating profit (PPOP) incresed 11 per cent to Rs 3,686 crore for the three-month period.

IndusInd's asset quality remained stable, with gross non-performing assets (NPAs) -- or gross bad loans -- as a percentage of total loans coming in at 2.06 per cent for the quarter ended December 2022, as against 2.11 per cent for the previous three months. 

Net non-performing assets came in at 0.62 per cent of net advances as on December 31, 2022, as against 0.61 per cent as on September 30, 2022.

Deposits at IndusInd Bank increased 14 per cent to Rs 3,25,278 crore compared with the year-ago period, according to the filing. Deposits in current and savings accounts grew 14 per cent on year, the lender said. 

The lender reported loan growth of 19 per cent on a year-on-year basis aided by all segments.

IndusInd Bank shares ended higher by Rs 8.3 or 0.7 per cent at Rs 1,222 apiece on BSE ahead of the earnings announcement, underperforming the benchmark Sensex index which finished 0.6 per cent higher. 

The stock gained three per cent in the quarter ended December 2022, a period in which the Sensex benchmark rose 5.9 per cent. 

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