Net income rose to ₹1,805 billion in the quarter ended September from ₹1,147 billion a year ago, on the basis of 18% loan growth.
CEO Sumant Kathpalia said the bank had disbursed a record £10,660bn in vehicle loans and £9,700bn in microfinance loans, which helped boost its wealth, which included a 24% annual growth in corporate lending.
Net Interest Income (NII), or the difference between interest earned on loans and interest paid on deposits, rose 18% to £4,302m. Other income increased 9% to ₹2,011 billion, led by a 24% growth in fee income.
“We expect our loan growth to be between 18% and 20% this fiscal year,” Kathpalia said. “We will continue to focus on retailing our book even as our stress book continues to fall.”
IndusInd’s net non-performing assets (NPAs) fell to 0.61% of loans from 0.80% a year earlier. As a result, total slippages also decreased. Provisions fell from ₹1,707 billion in the previous year to ₹1,141 billion.
The net interest margin (NIM), or the difference between the return earned on loans and the return paid on funds, improved to 4.24% in September 2022 from 4.07% a year ago, with the bank successfully increasing its return on assets from 8.44 to 8 Could increase .65% in the previous year.
Kathpalia said the bank will continue to focus on granularizing deposits, even as it limits its borrowing costs to 120 to 150 basis points of total loans throughout the year. One basis point corresponds to 0.01 percentage points.
https://economictimes.indiatimes.com/markets/stocks/earnings/indusinds-q2-net-profit-surges-57/articleshow/94974969.cms IndusInd Bank: IndusInd’s Q2 net profit surges 57%