IndusInd Bank reports net profit of Rs 8,977cr for FY 2023-24
IndusInd Bank Limited, a prominent financial institution in India, announced its financial results for the fiscal year ending March 31, 2024. The bank reported a net profit of ₹8,977 crores for the year, marking a significant increase of 21% from the previous year’s ₹7,443 crores. This growth is attributed to a robust loan growth of 18% and a deposit growth of 14%, reflecting the bank’s solid financial health and operational efficiency.
Key Financial Highlights
– Net Interest Income (NII) for the year increased by 17% to ₹20,616 crores.
– Net Interest Margin (NIM) remained strong at 4.26%.
– Total Income for the year was ₹55,144 crores, up from ₹44,541 crores in the previous year, indicating a substantial growth in both interest and fee income.
– Operating Expenses for the year were ₹14,148 crores, a rise from the previous year’s ₹11,346 crores, mainly due to the bank’s expansion and increased operational activities.
Quarterly Performance Insights For the quarter ended March 31, 2024:
– Net Profit grew by 15% year-over-year to ₹2,349 crores.
– Other Income saw a significant rise of 16% year-over-year to ₹2,508 crores, with core fee income growing by 10% to ₹2,293 crores.
– Operating Expenses for the quarter increased by 24% to ₹3,803 crores.
– Pre Provision Operating Profit (PPOP) registered a growth of 9% to ₹4,082 crores.
Asset Quality and Capital Adequacy
– Gross NPA ratio improved slightly to 1.92%.
– Net NPA ratio also saw a slight improvement to 0.57%.
– Provision Coverage Ratio remained stable at 71%.
– Capital Adequacy Ratio (CRAR) stood strong at 17.23%, although slightly lower than the previous year’s 17.86%.
IndusInd Bank has expanded its branch network to 2,984 branches and 2,956 ATMs. The bank’s customer base grew to approximately 39 million. The Board has recommended a dividend of ₹16.50 per share for FY 2023-24, compared to ₹14.00 per share for FY 2022-23.
Mr. Sumant Kathpalia, Managing Director & CEO of IndusInd Bank, commented on the bank’s performance, highlighting the achievement of crossing ₹5 trillion in balance sheet size and celebrating 30 years of operations. He expressed confidence in the bank’s continued progress and its alignment with India’s positive economic trajectory.
IndusInd Bank’s financial results for FY 2023-24 showcase a strong performance despite challenging market conditions. The bank’s strategic focus on expanding its loan and deposit portfolios, coupled with maintaining robust asset quality, positions it well for sustained growth. The increase in operational expenses is viewed as an investment in expanding the bank’s reach and enhancing its service capabilities, which is expected to yield positive returns in the long run.