IndusInd Bank Q3 Results: Standalone profit plunges 39% YoY to ₹1,401 crore

IndusInd Bank Q3 Results: The private sector lender IndusInd Bank on Friday, January 31, posted a 39% year-on-year (YoY) decline in standalone net profit to ₹1401.28 crore for the third quarter of the fiscal year 2024-25 (Q3 FY25). The figure stood at ₹2,297.45 crore in the same period last fiscal.

The standalone net interest income (NII) for the quarter under review witnessed a marginal 1.27% YoY dip to ₹5228 crore.

The net interest margin (NIM) for Q3 FY25 stood at 3.93%, down on a YoY basis from 4.29% posted in Q3 FY24. Even on a sequential basis, the NIM declined as against 4.08% posted in Q2 FY25.

The company's deposits saw an 11% uptick to ₹4,09,438 crore from ₹3,68,793 crore while saving deposits grew by 6% YoY.

NPAs

The Nifty 50 constituent said its gross non-performing asset (NPA) came in at 2.25% as of December 31, 2024, as against 2.11% as of September 30, 2024. Net NPA stood at 0.68% of net advances as of December 31, 2024, as compared to 0.64% as of September 30, 2024.

The Provision Coverage Ratio was consistent at 70% as of December 31, 2024. Provisions and contingencies (other than tax) for the quarter ended December 31, 2024, were ₹1,744 crore as compared to ₹969 crore for the corresponding quarter of the previous year. Total loan-related provisions as of December 31, 2024, were at ₹8,792 crores (2.4% of the loan book).

Distribution Network

As of December 31, 2024, the bank’s distribution network included 3,063 branches/ banking outlets and 2,993 onsite and offsite ATMs, as against 2,728 branches/ banking outlets and 2,939 onsite and offsite ATMs as of December 31, 2023. The client base stood at 42 million as on December 31, 2024.

Management Commentary

Commenting on the performance, Sumant Kathpalia, Managing Director & CEO, IndusInd Bank said, “The Indian macro indicators suggest stability in economic activity levels after the slowdown in Q2. This was also reflected in the sharp recovery in the retail disbursements of the Bank. Consequently, the Bank’s loan book grew by 12% YoY. The Bank maintained momentum on retail deposits growing at 14% YoY, with overall deposits growing at 11% YoY. The operating profits and net profits were stable at ₹3,601 crores (flat QoQ) and ₹1,402 crores (up 5% QoQ) respectively. The Bank remains watchful of asset quality trends in unsecured businesses and will calibrate growth accordingly. The Bank is well positioned to benefit from any fiscal and regulatory measures supporting rural as well as overall economic activity through its vehicle and microfinance businesses."

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