- IndusInd Bank reports a net profit of Rs 2,124 crore for Q1 FY2024, representing a 33% increase compared to the same period last year.
- The net profit is in line with market expectations, matching the CNBC TV-18 poll estimate of Rs 2,127 crore.
- Total income for the quarter rises by 28% YoY to Rs 12,939 crore, driven by a strong net interest income (NII) of Rs 5,863 crore, exceeding estimates by 21%.
- IndusInd Bank maintains a healthy asset quality, with gross non-performing assets (NPAs) declining to 1.94% and net NPAs improving to 0.58% compared to the previous year.
IndusInd Bank, a leading private sector lender in India, has reported its financial results for the first quarter of the fiscal year 2024. The bank’s net profit for the quarter stood at Rs 2,124 crore, marking a significant jump of 33 percent compared to the year-ago period. This figure aligns closely with the CNBC TV-18 poll estimate of Rs 2,127 crore, indicating that the bank performed in line with market expectations.
The bank’s total income for Q1FY24 rose by 28 percent year-on-year to Rs 12,939 crore, driven by robust growth in net interest income (NII). IndusInd Bank reported an NII of Rs 5,863 crore, surpassing the estimated value by 21 percent. This represents an 18 percent increase compared to the corresponding quarter of the previous fiscal year. The strong performance in net interest income can be attributed to effective interest rate management and an improved loan portfolio.
IndusInd Bank’s asset quality remained healthy during the quarter. The gross non-performing assets (NPAs) ratio decreased to 1.94 percent, down from 2.35 percent in the same quarter last year. Additionally, the net NPA ratio improved to 0.58 percent, compared to 0.67 percent on a year-on-year basis. These positive indicators reflect the bank’s successful efforts in managing and controlling credit risks.
The bank’s operating profit, excluding provisions and contingencies, amounted to Rs 3,830 crore, representing a 13 percent increase year-on-year. Provisions for the quarter stood at Rs 992 crore, lower than the Rs 1,251 crore reported in Q1FY23. The lower provision amount reflects improved asset quality and a more favorable economic environment.
IndusInd Bank’s capital adequacy ratio, calculated as per the Basel III norms, stood at 18.04 percent in the first quarter. This indicates a healthy level of capitalization and provides a strong buffer to support the bank’s growth and absorb any potential risks.
The market response to the bank’s earnings announcement was mixed. On July 17, IndusInd Bank’s shares settled at Rs 1,390.30 apiece on the Bombay Stock Exchange (BSE), showing a slight decrease of 0.17 percent compared to the previous day’s close.
IndusInd Bank’s Q1 FY2024 earnings reflect a robust financial performance, with significant growth in net profit and net interest income. The bank’s focus on maintaining asset quality and efficient risk management has contributed to its positive results. Going forward, IndusInd Bank aims to leverage its strong capital position and continue its growth trajectory while navigating the evolving economic landscape and industry dynamics.
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