IndusInd Bank Q1 FY24 financial results show growth in profit and deposits
IndusInd Bank Limited’s Board of Directors approved the Bank’s financial results for the quarter ending June 30, 2023, revealing a notable increase in net profit and balance sheet footage. This approval came during a meeting held in Mumbai on Tuesday, July 18, 2023.
The bank reported a net profit of ₹2,124 crores for the quarter ended June 30, 2023, a substantial rise of 30% compared to the same quarter of the previous year, which had a net profit of ₹1,631 crores. Moreover, the Pre Provision Operating Profit (PPOP) also saw growth, registering at ₹3,831 crores, a 12% increase over the previous year’s corresponding quarter.
Net Interest Income for the period also grew, reaching ₹4,867 crores, marking an 18% year-on-year growth and a 4% quarter-on-quarter increase. This increase is reflected in the Net Interest Margin, which stood at 4.29%, an increase from 4.21% in Q1 FY23 and 4.28% in Q4 FY23.
IndusInd Bank records 30% year-on-year net profit increase in Q1 FY24. Photo courtesy of Superfast1111/Wikimedia Commons.
In terms of assets and funds, the yield on assets for Q1 FY24 stood at 9.60%, a significant increase from the 8.35% yield during the same period in the previous year. Meanwhile, the cost of funds increased to 5.31% compared to 4.14% in the corresponding quarter of the previous year.
Other income for Q1 FY24 also saw growth, amounting to ₹2,210 crores, which is a 14% YoY increase. Simultaneously, the bank’s balance sheet footage as of June 30, 2023, was ₹4,66,993 crores, showing a 14% growth from the same date the previous year.
The bank’s deposit base also expanded, with deposits reaching ₹3,47,047 crores as of June 30, 2023, which is a 15% increase over June 30, 2022. Notably, Current Account and Savings Account (CASA) deposits increased to ₹1,38,440 crores and made up 40% of total deposits as at the end of June 2023.
Speaking on the financial performance, Sumant Kathpalia, Managing Director & CEO, IndusInd Bank, said: “The quarter witnessed economic activity in the country gaining momentum as is visible from various high-frequency indicators. India remains a bright spot and the relative attractiveness was reflected in healthy foreign investment inflows during the quarter…The Bank thus reported a healthy operating profit of ₹3,831 crores and net profit after tax of ₹2,124 crores growing 30% YoY. Overall, Q1 marks a healthy start to our PC-6 strategy and we remain committed to achieving our ambitions outlined in the plan.”