Net profit increased to ₹1,805 crore in the quarter ended September from ₹1,147 crore a year ago, on the back of an 18% loan growth.
CEO Sumant Kathpalia said the bank disbursed a record ₹10,660 crore of vehicle loans and ₹9,700 crore of micro finance loans, helping boost its assets that included a 24% year-on-year growth in corporate advances.
Net interest income (NII), or the difference between the interest earned on loans and that paid on deposits, climbed 18% to ₹4,302 crore. Other income increased 9% to ₹2,011 crore led by a 24% growth in fee earnings.
“We expect our loan growth to be between 18% and 20% this fiscal,” Kathpalia said. “We will continue to focus on retailisation of our book even as our stress book continues to fall.”
IndusInd’s net non-performing assets (NPAs) dropped to 0.61% of loans from 0.80% a year earlier. Total slippages also fell, as a result. Provisions dropped to ₹1,141 crore from ₹1,707 crore in the previous year.
Net interest margin (NIM), or the difference between the yield earned on loans and that paid for funds, improved to 4.24% in September 2022 from 4.07% a year ago, with the bank successfully increasing its yield on assets to 8.65% from 8.44% in the previous year.
Kathpalia said the bank will continue to focus on granularisation of deposits even as it limits its credit costs to 120 to 150 basis points of total loans during the year. One basis point is 0.01 percentage point.
