IndusInd Bank, a private sector bank, announced its results for the quarter ending in September 2024 on Thursday. The bank reported a 39% drop in net profit for the quarter, which stood at ₹1,325 crore. On the other hand, net interest income rose by 5% to ₹5,347 crore. However, the profit reported was lower than the market’s estimate of ₹2,138 crore. In the same quarter of the previous financial year, the profit was ₹2,181.47 crore.
Key Financial Metrics
During this quarter, the net interest margin was 4.08%, which is 21 basis points (bps) lower than the 4.29% recorded in the same period last year, and down by 18 bps from the previous quarter. The bank’s deposits crossed ₹4 trillion, showing a 15% growth from ₹3,59,548 crore to ₹4,12,317 crore year-on-year. The gross non-performing asset (NPA) ratio and net NPA ratio were reported at 2.11% and 0.64%, respectively, compared to 1.93% and 0.57% in the same period last year.
CASA Deposits and Total Deposits
CASA (Current Account and Savings Account) deposits increased to ₹1,47,944 crore, with current account deposits at ₹52,606 crore and savings account deposits at ₹95,338 crore. By September 30, 2024, CASA deposits made up 35.87% of the total deposits.
Provisioning and Capital Adequacy Ratio
As of September 30, 2024, the bank’s provisioning coverage ratio was 70%. Provisions and contingencies for the quarter were ₹1,820 crore, up from ₹974 crore in the same quarter last year. The capital adequacy ratio stood at 16.51%, down from 18.21% a year ago. Other income was ₹2,185 crore, slightly lower than ₹2,282 crore in the same period last year.
CEO’s Remarks on Performance
IndusInd Bank’s Managing Director and CEO, Sumant Kathpalia, commented on the bank’s performance, stating, “Despite ongoing global uncertainties, the Indian economy has shown resilience. The banking industry continues to face competition for deposits and a shift between unsecured and secured loans. IndusInd Bank has focused on gathering retail deposits, maintaining its secured loan portfolio, reducing unsecured loans, and building up its provisioning buffer.”
Stock Performance
On Thursday, IndusInd Bank’s shares rose by 0.5% to close at ₹1,278.90 on the BSE. As of October 24, 2024, the bank’s stock traded at ₹1,279.00, up by ₹4.70 (0.37%) from the previous day. The stock opened at ₹1,269.10 today, with a market capitalization of ₹99.63 thousand crore, a P/E ratio of 11.04, and a dividend yield of 1.29%. The bank’s 52-week high was ₹1,694.50, and the low was ₹1,258.15.