Net interest income (NII) stood at Rs 5,347 crore in Q2 FY25, registering a growth of 5% on YoY basis. Net interest margin (NIM) in Q2 FY25 was at 4.08% as compared to 4.29% registered in Q2 FY24.
The bank's pre provision operating profit (PPOP) stood at Rs 3,591.77 crore in the September quarter, down 7.45% from Rs 3,880.89 crore reported in the same period a year ago.
Operating expenses during the quarter was at Rs 3,932 crore, up 13.97% YoY.
On asset quality front, the bank's gross NPA was at 2.11% of gross advances as on 30 September 2024 as against 1.93% as on 30 September 2023. The net NPA stood at 0.64% of net advances as on 30 September 2024 as compared to 0.57% as on 30 September 2023.
The provision coverage ratio remained consistent at 70% as of September 30, 2024. Provisions and contingencies for the quarter ended September 30, 2024, were Rs 1,820 crore, compared to Rs 974 crore for the corresponding quarter of the previous year. This includes an increase of Rs 525 crore in contingent provisions as a prudent measure by the bank. Total loan-related provisions as of September 30, 2024, stood at Rs 8,412 crore (2.4% of the loan book).
Deposits as on 30 September 2024 stood at Rs 4,12,397 crore as against Rs 3,59,548 crore, an increase of 15% over 30 September 2023.
CASA deposits increased to Rs 1,47,944 crore with current account deposits at Rs 52,606 crore and savings account deposits at Rs 95,338 crore. CASA deposits comprised 37.87% of total deposits as at 30 September 2024.
Advances as of September 30, 2024, were Rs 3,57,159 crore, compared to Rs 3,15,454 crore, representing an increase of 13% over September 30, 2023.
The bank’s total capital adequacy ratio as per Basel III guidelines stood at 16.51% as on 30 September 2024, as compared to 18.21% as on September 30, 2023. Tier 1 CRAR was at 15.21% as on September 30, 2024 compared to 16.15% as on September 30, 2023. Risk-Weighted Assets were at Rs 4,20,519 crore as against Rs 3,50,376 crore a year ago.
Sumant Kathpalia, managing director and CEO, IndusInd Bank, said, “The Indian economy continued resilient performance despite increasingly turbulent global landscape. The Banking industry however has seen continued competitive intensity for deposits and divergent trends for growth and asset quality in unsecured loans versus secured loans. IndusInd Bank too aligned its strategy focusing on ramping up retail deposit mobilization, maintaining traction on secured loans, de-growing unsecured loans and building conservative buffers on provisions.
The outcomes for Q2 were evident in deposit growth of 15% YoY ahead of loan growth of 13% YoY. The NNPAs were stable at 0.64% with 70% provision coverage ratio. The Profit After Tax at Rs 1,331crore lower by 40% YoY as we build contingent provision buffer this quarter. The Capital Adequacy remains healthy at 16.51% and Liquidity Coverage at 118 % well above regulatory thresholds. The Bank thus has strengthened the balance sheet during the quarter and will look towards growth acceleration in tandem with underlying economy.”
IndusInd Bank caters to both consumer and corporate customers. As of 30 September 2024, the bank’s distribution network included 3,040 branches/ banking outlets and 3,011 ATMs, as against 2,631 branches/ banking outlets and 2903 ATMs as of September 30, 2023. The client base stood at approximately 41 million as on 30 September 2024.
Shares of IndusInd Bank tumbled 15.12% to Rs 1085.50 on the BSE.