IndusInd Bank Q1 Results FY2023, PAT at Rs. 1631 crores

On 20th July 2022, IndusInd Bank announced its quarterly results for the first quarter of FY2023

Q1FY23 Key Highlights:

- Net Interest Income (NII) grew by 16% YoY to Rs. 4,125 crores in Q1FY23 from Rs. 3,564 crores in Q1FY22

- In Q1FY23, other income grew by 12% YoY to Rs.1,932 crores from Rs.1,723 crores 

- The bank reported a Net Profit of Rs. 1,631 crores with a growth by 61% YoY 

Business Highlights:

-The bank’s deposits grew by 13% YoY to Rs. 3,02,719 crores from Rs. 2,67,233 crores 

- Pre Provision Operating Profit (PPOP) was reported at Rs. 3,431 crores for Q1FY23 registered a growth of 10% over the corresponding quarter of the previous year at Rs. 3,121 crores. PPOP / Advance ratio for the quarter ended June 30, 2022, steady at 5.70%. 

- Balance sheet footage for Q1FY23, was Rs. 4,10,100 crores as against Rs. 3,72,996 crores in Q1FY22, showing a growth of 10%. 

- CASA deposits increased to Rs. 1,30,508 crores with Current Account deposits at Rs. 35,265 crores and Savings Account deposits at Rs. 95,243 crores. CASA deposits comprised 43% of total deposits in Q1FY23. 

- Advances in Q1FY23, were at Rs. 2,47,960 crores as against Rs. 2,10,727 crores, an increase of 18% in Q1FY22. 

- The loan book quality remains stable. The Gross NPA was at 2.35% of gross advances in Q1FY23, as against 2.27% in Q4FY22. Net Non-Performing Assets were 0.67% of net advances in Q1FY23 compared to 0.64% in Q4FY22.

- The Bank's Total Capital Adequacy Ratio as per Basel III guidelines improved to 18.14% Q1FY23, as compared to 17.57% Q1FY22. Tier I CRAR was at 16.55% Q1FY23, compared to 16.87% Q1FY22. Risk-Weighted Assets were at Rs. 3,03,118 crores as against Rs. 2,72,367 crores a year ago. 

- In Q1FY23, the Bank's distribution network included 2,286 branches/banking outlets and 2,783 onsite and offsite ATMs, as against 2,015 branches/banking outlets and 2,870 onsite and offsite ATMs in Q1FY22. The client base stood at 32 million Q1FY23. 

Commenting on the performance, Mr. Sumant Kathpalia, Managing Director & CEO, Induslnd Bank said: "The Q1FY23 witnessed turbulent operating environment with interlinkages of inflation, reversal of accommodative monetary policy and Russia-Ukraine conflict playing out. The first quarter of a financial year is also a seasonally weak quarter for some businesses. The Bank has nevertheless focussed on delivering on its strategic ambitions. Our loan growth has accelerated to 18% from 12% 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 a 16% growth in CASA, and a 17% growth in Retail deposits as per LCR resulting in overall deposit growth of 13%. All key profitability metrics across NIMs, core PPOP margin, RoA, and RoE have maintained a positive trajectory. This resulted in profit after tax for the quarter at Rs. 1,631 crores growing by 61% YoY and 16% QoQ."