Indusind Bank has reported marginal 1% growth in net profit at Rs 2152.16 crore for the quarter ended June 2024 (Q1FY2025). The bank has posted 11% growth in net interest income (NII), while the core fee income of the bank improved 15% in Q1FY2025. The Net Interest Margin (NIM) of the bank declined marginally to 4.25% in Q1FY2025 compared to 4.29% in the corresponding quarter of previous year.

On business front, the bank as has posted 15% growth in business with 15% surge in loan book. The asset quality of the bank was impacted due to increase in fresh slippages of loans in Q1FY2025. Bank has witnessed increase in the credit to deposit ratio to 87.3% at end June 2024 from 86.8% at end June 2023. CASA deposits ratio of the bank has declined to 36.7% at end June 2024 from 39.9% at end June 2023.

Asset quality impacted by high slippages: The bank has witnessed some pressure from high slippages of loans on asset quality in Q1FY2025.

The fresh slippages of loans stood at Rs 1536 crore in Q1FY2025 compared with 1428 crore in previous quarter and Rs 1376 crore in the corresponding quarter last year.

The recoveries of NPAs stood at Rs 175 crore, upgradations at Rs 113 crore and the write-off of loans was at Rs 614 crore in Q1FY2025.

The standard restructured loan book of the bank stood at Rs 1183 crore end June 2024.

Provision coverage ratio was steady at 71.00% at end June 2024 compared to 71.00% a quarter ago and 71.00% a year ago.

The capital adequacy ratio of the bank stood at 17.6% with Tier I ratio at 16.2% at end June 2024.

The risk weighted assets of the bank has increased 16% YoY to Rs 388838 crore end June 2024,

Asset Quality Indicators: Indusind Bank
'	Jun-24	Mar-24	Dec-23	Sep-23	Jun-23	Variation
						QoQ	YoY
Gross NPA (Rs Crore)	7126.80	6693.38	6377.05	6164.22	5941.12	6	20
Net NPA (Rs Crore)	2095.47	1968.90	1875.18	1813.76	1746.93	6	20
% Gross NPA	2.02	1.92	1.92	1.93	1.94	10	8
% Net NPA	0.60	0.57	0.57	0.57	0.58	3	2
% PCR	71.00	71.00	71.00	71.00	71.00	0	0
% CRAR - Basel III	17.55	17.23	17.86	18.21	18.40	32	-85
% CRAR - Tier I - Basel III	16.15	15.82	16.47	16.75	16.89	33	-74
Variation in basis points for figures given in percentages and in % for figures in Rs crore

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Business Highlights:

Healthy business growth: The business of the bank has increased 15% YoY to Rs 746411 crore end June 2024, driven by 15% surge in advances to Rs 347898 crore. Deposits rose 15% to Rs 398513 crore at end June 2024.

CASA deposits ratio declines: The CASA deposits of the bank increased 6% YoY to Rs 146134 crore at end June 2024. The current account deposits declined 2% to Rs 48475 crore, while saving account deposits increased 10% to Rs 97659 crore end June 2024. The CASA ratio declined to 36.7% at end June 2024 compared to 39.9% at end June 2023, while eased from 37.9% a quarter ago.

The term deposits have increased 21% to Rs 252379 crore end June 2024.

Healthy retail loan growth: Advances growth was driven by retail loans rising 18% YoY to Rs 190625 crore at end June 2024. The credit to MSME moved up 16% to Rs 72228 crore at end June 2024. The corporate credit has moved up 10% to Rs 85045 crore end June 2024.

Investment book of the bank rose 7% YoY to Rs 101024 crore at end June 2024.

Margins ease slightly: The bank has showed 41 bps YoY jump in cost of deposits to 6.53%, while yield on advances increased 33 bps YoY to 12.57% in Q1FY2025. Thus, the NIM has declined marginally by 4 bps YoY to 4.25%.

Branch expansion: The bank has added 29 branches and 32 ATMs in Q1FY2025, taking overall tally to 3013 branches and 2988 ATM`s end June 2024.

Book value of the bank stood at Rs 838.8 per share at end June 2024, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 810.4 per share at end June 2024.

Quarterly Performance

NII rises on steady NIMs: Bank has recorded 17% increase in the interest earned at Rs 12546.77 crore, while interest expenses increased 22% to Rs 7139.14 crore in Q1FY2025. NII improved 11% to Rs 5407.63 crore in the quarter ended June 2024.

Healthy growth in the core fee income: Bank has posted strong 15% growth in core fee income to Rs 2143 crore, while the treasury income declined 2% to Rs 93 crore. The forex income dipped 22% to Rs 205 crore. The overall non-interest income increased 10% to Rs 2441.25 crore in the quarter ended June 2024.

Expenses ratio rises: The operating expenses of the bank increased 21% to Rs 3922.19 crore, as other expenses moved up 21% to Rs 2882.54 crore, while employee expenses increased 20% to Rs 1039.65 crore in Q1FY2025. Cost to income ratio increased to 50.0% in Q1FY2025 compared with 45.9% in Q1FY2024. Operating Profit increased 3% to Rs 3926.69 crore.

Provisions and contingencies rises: The bank has showed 6% rise in provisions to Rs 1049.84 crore.

Effective tax rate was flat at 25.2% in Q1FY2025 from 25.2% in Q1FY2024. Net Profit rose by 1% YoY to Rs 2152.16 crore during quarter ended June 2024.

Financial Performance FY2024:

Bank has posted 21% increase in net profit to Rs 8949.78 crore in the year ended March 2024 (FY2024). The net interest income increased 17% to Rs 20615.91 crore, while non-interest income moved up 15% to Rs 9387.85 crore, pushing up net total income by 16% to Rs 30003.76 crore in FY2024. The operating expenses increased 25% to Rs 14263.49 crore, while provision and contingencies dipped 15% to Rs 3798.74 crore, allowing profit before tax to increase 21% to Rs 11941.53 crore in FY2024. The cost-to-income ratio rose to 47.5% in FY2024 compared to 44.3% in FY2023. An effective tax rate was steady at 25.1% in FY2024 compared to 25.1% in FY2023. The net profit has increased 21% to Rs 8949.78 crore in FY2024.

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Indusind Bank: Results
Particulars	2406 (3)	2306 (3)	Var %	2403 (12)	2303 (12)	Var %
Interest Earned	12546.77	10729.65	17	45748.21	36367.91	26
Interest Expended	7139.14	5862.54	22	25132.30	18775.80	34
Net Interest Income	5407.63	4867.11	11	20615.91	17592.11	17
Other Income	2441.25	2209.77	10	9387.85	8166.37	15
Net Total Income	7848.88	7076.88	11	30003.76	25758.48	16
Operating Expenses	3922.19	3246.82	21	14263.49	11412.00	25
Operating Profits	3926.69	3830.06	3	15740.27	14346.48	10
Provisions & Contingencies	1049.84	991.57	6	3798.74	4486.83	-15
Profit Before Tax	2876.85	2838.49	1	11941.53	9859.65	21
Provision for tax	724.69	714.87	1	2991.75	2469.93	21
PAT	2152.16	2123.62	1	8949.78	7389.72	21
EPS*(Rs)	110.5	109.1	'	115.0	94.9	'
Adj BV (Rs)	810.4	708.0	'	775.1	674.8	'
* Annualized on current equity of Rs 778.72 crore. Face Value: Rs 10, Figures in Rs crore
Source: Capitaline Corporate Database

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