Indusind Bank has reported 39% dip in net profit at Rs 1401.28 crore for the quarter ended December 2024 (Q3FY2025). The bank has posted 1% decline in net interest income (NII), while the core fee income of the bank also declined 2% in Q3FY2025. The Net Interest Margin (NIM) of the bank dipped to 3.93% in Q3FY2025 compared to 4.29% in the corresponding quarter of previous year.
On business front, the bank as has posted 12% growth in business with 12% increase in loan book. The asset quality of the bank has witnessed pressure in Q3FY2025. Bank has witnessed increase the credit to deposit ratio to 89.6% at end December 2024 from 88.7% at end December 2023. CASA ratio of the bank has declined to 34.9% at end December 2024 from 38.5% at end December 2023.Asset quality impacted by slippages of loans: The bank has witnessed pressure on asset quality in Q3FY2025.
The fresh slippages of loans stood at Rs 2200 crore in Q3FY2025 compared with 1798 crore in previous quarter and Rs 1765 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 190 crore, upgradations at Rs 150 crore and the write-off of loans was at Rs 984 crore in Q3FY2025. The standard restructured loan book of the bank stood at Rs 660 crore end December 2024. Provision coverage ratio was steady at 70.00% at end December 2024 compared to 70.00% a quarter ago and 71.00% a year ago. The capital adequacy ratio of the bank stood at 16.5% with Tier I ratio at 15.2% at end December 2024. The risk weighted assets of the bank has increased 16% YoY to Rs 429165 crore end December 2024.| Asset Quality Indicators: Indusind Bank | ||||||||
| ' | Dec/24 | Sep/24 | Jun/24 | Mar/24 | Dec/23 | Variation | ||
| QoQ | YTD | YoY | ||||||
| Gross NPA (Rs Crore) | 8375.29 | 7638.52 | 7126.80 | 6693.38 | 6377.05 | 10 | 25 | 31 |
| Net NPA (Rs Crore) | 2495.76 | 2282.01 | 2095.47 | 1968.90 | 1875.18 | 9 | 27 | 33 |
| % Gross NPA | 2.25 | 2.11 | 2.02 | 1.92 | 1.92 | 14 | 33 | 33 |
| % Net NPA | 0.68 | 0.64 | 0.60 | 0.57 | 0.57 | 4 | 11 | 11 |
| % PCR | 70.00 | 70.00 | 71.00 | 71.00 | 71.00 | 0 | -100 | -100 |
| % CRAR - Basel III | 16.46 | 16.51 | 17.55 | 17.23 | 17.86 | -5 | -77 | -140 |
| % CRAR - Tier I - Basel III | 15.18 | 15.21 | 16.15 | 15.82 | 16.47 | -3 | -64 | -129 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
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Business Highlights:
Business growth ease: The business of the bank has increased at slower pace of 12% YoY to Rs 776327 crore end December 2024, driven by 12% rise in advances to Rs 366889 crore. Deposits rose 11% to Rs 409438 crore at end December 2024.
CASA deposits ratio declines: The CASA deposits of the bank increased 1% YoY to Rs 142818 crore at end December 2024. The current account deposits dipped 8% to Rs 45872 crore, while saving account deposits increased 6% to Rs 96946 crore end December 2024. The CASA ratio declined to 34.9% at end December 2024 compared to 38.5% at end December 2023, while declined from 35.8% a quarter ago. The term deposits have increased 18% to Rs 266620 crore end December 2024.
Corporate loan book driving credit growth: Advances growth was driven by corporate credit rising 14% to Rs 92674 crore end December 2024. The retail loans book rose 9% YoY to Rs 196653 crore and MSME jumped 18% to Rs 77562 crore at end December 2024.
Investment book of the bank increased 22% YoY to Rs 118851 crore at end December 2024.
Margins decline: The bank has showed 14 bps YoY jump in cost of deposits to 6.58%, while yield on advances dipped 24 bps YoY to 12.21% in Q3FY2025. NIM has declined 36 bps YoY and fell 15 bps qoq to 3.93% in Q3FY2025.
Branch expansion: The bank has added 23 branches and reduced 18 ATMs in Q3FY2025, taking overall tally to 3063 branches and 2993 ATM`s end December 2024.
Book value of the bank stood at Rs 858.1 per share at end December 2024, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 825.2 per share at end December 2024.
Quarterly Performance
NII decline as NIM dip and loan growth slows: Bank has recorded 11% increase in the interest earned at Rs 12800.77 crore, while interest expenses increased 21% to Rs 7572.68 crore in Q3FY2025. NII declined 1% to Rs 5228.09 crore in the quarter ended December 2024.
Core fee income declines: Bank has posted 2% dip in core fee income to Rs 1857 crore, while the forex income fell 4% to Rs 266 crore. However, the treasury income was flat at Rs 232 crore. the overall non-interest income declined 2% to Rs 2350.24 crore in the quarter ended December 2024.
Expenses ratio rises: The operating expenses of the bank increased 8% to Rs 3979.42 crore, as other expenses moved up 9% to Rs 2909.88 crore, while employee expenses increased 4% to Rs 1069.54 crore in Q3FY2025. Cost to income ratio rose to 52.5% in Q3FY2025 compared with 48.0% in Q3FY2024, causing the Operating Profit to decline 10% to Rs 3598.91 crore.
Provisions and contingencies jump: The bank has showed 87% surge in provisions to Rs 1743.63 crore.
Effective tax rate declined to 24.5% in Q3FY2025 from 25.1% in Q3FY2024. Net Profit fell 39% YoY to Rs 1401.28 crore during quarter ended December 2024.
Financial Performance 9MFY2025:
Bank has posted 26% dip in net profit to Rs 4878.89 crore in the nine months ended December 2024 (9MFY2025). The net interest income increased 5% to Rs 15982.98 crore, while non-interest income moved up 1% to Rs 6975.39 crore, pushing up net total income by 4% to Rs 22958.37 crore in 9MFY2025. The operating expenses increased 14% to Rs 11841.00 crore, while provision and contingencies galloped 59% to Rs 4613.57 crore, causing 26% decline in the profit before tax to Rs 6503.80 crore in 9MFY2025. The cost-to-income ratio increased to 51.6% in 9MFY2025 compared to 47.1% in 9MFY2024. An effective tax rate was steady at 25.0% in 9MFY2025 compared to 25.1% in 9MFY2024. The net profit has declined 26% to Rs 4878.89 crore in 9MFY2025.| Indusind Bank: Results | |||||||||
| Particulars | 2412 (3) | 2312 (3) | Var % | 2412 (9) | 2312 (9) | Var % | 2403 (12) | 2303 (12) | Var % |
| Interest Earned | 12800.77 | 11572.25 | 11 | 38033.82 | 33549.68 | 13 | 45748.21 | 36367.91 | 26 |
| Interest Expended | 7572.68 | 6276.62 | 21 | 22050.84 | 18310.21 | 20 | 25132.30 | 18775.80 | 34 |
| Net Interest Income | 5228.09 | 5295.63 | -1 | 15982.98 | 15239.47 | 5 | 20615.91 | 17592.11 | 17 |
| Other Income | 2350.24 | 2395.85 | -2 | 6975.39 | 6887.37 | 1 | 9387.85 | 8166.37 | 15 |
| Net Total Income | 7578.33 | 7691.48 | -1 | 22958.37 | 22126.84 | 4 | 30003.76 | 25758.48 | 16 |
| Operating Expenses | 3979.42 | 3689.26 | 8 | 11841.00 | 10413.67 | 14 | 14263.49 | 11412.00 | 25 |
| Operating Profits | 3598.91 | 4002.22 | -10 | 11117.37 | 11713.17 | -5 | 15740.27 | 14346.48 | 10 |
| Provisions & Contingencies | 1743.63 | 934.23 | 87 | 4613.57 | 2899.63 | 59 | 3798.74 | 4486.83 | -15 |
| Profit Before Tax | 1855.28 | 3067.99 | -40 | 6503.80 | 8813.54 | -26 | 11941.53 | 9859.65 | 21 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 1855.28 | 3067.99 | -40 | 6503.80 | 8813.54 | -26 | 11941.53 | 9859.65 | 21 |
| Provision for tax | 454.00 | 770.14 | -41 | 1624.91 | 2210.60 | -26 | 2991.75 | 2469.93 | 21 |
| PAT | 1401.28 | 2297.85 | -39 | 4878.89 | 6602.94 | -26 | 8949.78 | 7389.72 | 21 |
| EPS*(Rs) | 71.9 | 118.0 | ' | 83.5 | 113.0 | ' | 114.9 | 94.9 | ' |
| Adj BV (Rs) | 825.2 | 751.6 | ' | 825.2 | 751.6 | ' | 775.1 | 674.8 | ' |
| * Annualized on current equity of Rs 779.05 crore. Face Value: Rs 10, Figures in Rs crore | |||||||||
| Source: Capitaline Corporate Database | |||||||||
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