IndusInd Bank Q4 net profit surges 15% on core income growth

IndusInd Bank reported a 15% increase in net profit for the March quarter to Rs 2,349 crore, driven by core income growth. For FY24, net profit rose 21% to Rs 8,977 crore. Core net interest income grew 15%, with advances expanding 18%. The bank targets 18-22% loan growth in FY25 and a NIM of 4.2-4.3%. Deposit growth showed signs of strain due to tight liquidity. Loan growth was driven by retail and corporate segments, with a mix of 56:44 in favor of retail loans. Gross non-performing assets remained at 1.92%, while gross slippages were primarily from consumer loans. Expenses rose during FY24, with the cost to income ratio at 48.23%. The bank plans to increase its branch network to 3,500 in the coming years. Despite speculation of increased stake acquisition by promoters, the bank has no official communication on this matter.

IndusInd Bank on Thursday reported a 15 per cent growth in consolidated net profit to Rs 2,349.15 crore in the March quarter, driven by core income growth.

The city-based private sector bank's net profit for the entire FY24 increased 21 per cent to Rs 8,977 crore from Rs 7,443 crore. Its core net interest income for the quarter grew 15 per cent to Rs 5,376 crore, on the back of an 18 per cent growth in advances and a slight compression in the net interest margin at 4.26 per cent.

Its chief executive officer and managing director Sumant Kathpalia told reporters that the bank will be aiming for a loan growth between 18 per cent and 22 per cent for FY25, and the NIMs (net interest margin) will come at 4.2-4.3 per cent in the coming quarters.

The bank reported a 14 per cent growth in deposits, and Kathpalia said deposit accretion has been an issue due to the tight liquidity conditions.

It reported a 16 per cent growth in the other income to Rs 2,508 crore, which included booking a core fee income of Rs 2,293 crore.

The loan growth was driven by both retail and corporate, and the mix between the two stands at 56:44 in favour of the small-value, high-margin retail loans.

On the asset quality front, the gross slippages stood at Rs 1,428 crore and a majority, Rs 1,266 crore, came from consumer loans.

Its gross non-performing assets ratio was at 1.92 per cent, the same level as the preceding December quarter.

The bank reported a sizable growth in operating expenses in FY24 to Rs 14,148 crore as against Rs 11,346 crore in the year-ago period, and the cost to income ratio came at 48.23 per cent.

Kathpalia said the IT spends are currently between 8-10 per cent of the cost to income.

The overall number of branches grew to 2,984 at the end of March, and Kathpalia said the target is to have 3,500 branches in the next two years.

When asked about the promoter Hinduja family's interest in upping the stake in the bank, Kathpalia said the bank is not privy to any communication between the RBI and the family.

Shares of IndusInd Bank closed 1.46 per cent higher at Rs 1,496.15 apiece on the BSE on Thursday, as against gains of 0.66 per cent on the benchmark.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)