IndusInd Bank Ltd. for the second quarter ended September 30, 2024, reported consolidated net profit fell 40% to ₹1,331 crore from ₹2,202 crore in the year-earlier period as the bank made larger provisions during the quarter to build buffer.
Net profit adjusted for contingent provision increase during the quarter was ₹1,725 crore, the bank said in a filing.
The provision coverage ratio was consistent at 70% as at September 30, 2024. Provisions and contingencies for the quarter were ₹1,820 crore as compared with ₹974 crore in the year-earlier period.
This includes an increase of ₹525 crore in the contingent provisions as a prudent measure by the bank. Total loan related provisions as on September 30, 2024 were at ₹8,412 crore (2.4% of loan book), the bank said.
Net Interest Income for the quarter at ₹5,347 crore, grew by 5% YoY. Net Interest Margin was at 4.08% against 4.29% for the year ago period.
Sumant Kathpalia, Managing Director & CEO, IndusInd Bank said, “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 ₹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,’ he added.
Balance sheet footage as on September 30, 2024 was ₹5,43,407 crore as against ₹4,77,922 crore a year ago, up 14%.
Deposits increased 15% YoY to ₹4,12,397 crore. Advances grew 13% YoY to ₹3,57,159 crore.
The Gross NPA were at 2.11% of gross advances as on September 30, 2024 as against 2.02% a year ago. Net Non-Performing Assets were 0.64% of net advances as compared to 0.60% in the same period last year.
Published - October 25, 2024 12:08 am IST
