IndusInd Bank Q2 result: PAT falls 40% YoY; NIM moderates

IndusInd Bank Q2 result: Private sector lender IndusInd Bank on Thursday, October 24, reported a 39.5 per cent year-on-year (YoY) decline in consolidated net profit at ₹1,331.29 crore for the September quarter of the current financial year (Q2FY25). In the same quarter last year, the bank had reported a profit of ₹2,202.16 crore.

The bank said the net profit, adjusted for the contingent provision increase during the quarter, was ₹1,725 crore.

Net interest income (NII) for the quarter stood at ₹5,347 crore, up 5 per cent YoY, while net interest margin (NIM) came at 4.08 per cent against 4.29 per cent in the same quarter last year and 4.25 per cent for the first quarter of FY25.

The bank said its NIM moderated as it reduced the share of microfinance loans in the overall loans.

The yield on assets stood at 9.69 per cent for the quarter. The cost of funds stood at 5.61 per cent against 5.40 per cent for the corresponding quarter of the previous year.

Other income came at ₹2,185 crore for the quarter against ₹2,282 crore for the corresponding quarter of the previous year.

Operating expenses for the quarter rose 14 per cent to ₹3,932 crore, compared to ₹3,450 crore in the same quarter last year.

The bank's pre-provision operating profit (PPOP) for the quarter declined 8 per cent to ₹3,600 crore compared to ₹3,909 crore in the same quarter last year.

Deposits by the end of the September quarter stood at ₹4,12,397 crore, up 15 per cent YoY, compared to ₹3,59,548 crore in the same quarter last year.

The bank said its CASA (current account 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.

"CASA deposits comprised 35.87 per cent of total deposits as of the end of the September quarter. Retail deposits as per LCR (liquidity coverage ratio) stand at ₹1,81,911 crore, against ₹1,57,187 crore in the same quarter last year, up by 16 per cent YoY," the bank said.

Advances grew 13 per cent YoY to ₹3,57,159 crore for the quarter under review against ₹3,15,454 crore in the corresponding quarter last year.

The bank said its loan book quality remains stable.

According to the bank's exchange filing, gross NPA was 2.11 per cent of gross advances as of September 30 this year, compared to 2.02 per cent QoQ. Net non-performing assets were 0.64 per cent of net advances, compared to 0.60 per cent QoQ.

"Provisions and contingencies for the quarter were ₹1,820 crore compared to ₹974 crore for the corresponding quarter of the previous year. This includes an increase of ₹525 crore in the contingent provisions as a prudent measure by the bank. Total loan-related provisions as of September 30, 2024, were ₹8,412 crore (2.4 per cent of loan book)," said the bank.

Shares of IndusInd Bank ended 0.53 per cent up at ₹1,278.90 apiece on Thursday, October 24.

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