IndusInd bank share gains over 6% after net profit jumps 64% in Q1
IndusInd bank recorded a 64.4% YoY growth in standalone net profit to Rs 1,603.29 crore
The private bank's net interest income increased by 16% year on year to Rs 4,215 crore
The bank's net interest margin for the period under review was 4.21%, up from 4.06% a year earlier
IndusInd Bank shares rose over 6% to Rs 937.45 on Thursday's intraday trade, a day after the bank disclosed its June quarterly results.
During Q1FY23, the bank recorded a 64.4% year-on-year growth in standalone net profit to Rs 1,603.29 crore, driven by a robust increase in net interest income.
In the first quarter of the previous fiscal year, the private sector lender earned a profit after tax of Rs 974.95 crore. IndusInd Bank's net profit increased 17.8% sequentially from Rs 1,361.37 crore in January-March.
The private bank's net interest income increased by 16% year on year to Rs 4,215 crore in the previous quarter. Net interest revenue (the difference between interest earned and interest expenditure) increased by 4% sequentially.
IndusInd Bank's net interest margin for the period under review was 4.21%, up from 4.06% a year earlier and 4.20% in January-March.
Other income at the bank was Rs 932 crore in April-June, 12% more than Rs 723 crore the previous year. Core fees increased by 47% year on year to Rs 786 crore, up from Rs 214 crore the previous year. On June 30, IndusInd Bank's deposits were at Rs 3.02 trillion, up 13% from Rs 2.67 trillion the previous year.
Current Account Savings Account (CASA) deposits, which are low-cost deposits, increased to Rs 1.30 trillion (as of June 30), with current account deposits accounting for Rs 35,265 crore and savings accounts accounting for Rs 95,243 crore.
CASA deposits accounted for 43% of total deposits as of June 30, according to the bank. The bank's advances totalled Rs 2.47 trillion, up 18% from Rs 2.10 trillion the previous year.
In response to the bank's guidance for a net interest margin of 4.15%-4.25%, Managing Director and Chief Executive Officer Sumant Kathpalia stated during an earnings call that the bank was confident of meeting that target for the year, even as deposit rates rise amid the Reserve Bank of India's monetary tightening cycle.