IndusInd Bank Q3 Net Profit Jumps 69%, Trumps Street Estimate, Provisions Fall
By Malvika Gurung
Investing.com -- The private sector lender IndusInd Bank (NS: INBK ) released its earnings results for the quarter ended on Dec 31, 2022, on Wednesday, posting a higher than estimated rise in the bottomline.
The bank’s consolidated net profit jumped 68.7% YoY and 9.65% sequentially to Rs 1,959.2 crore in the December quarter, exceeding the Street’s estimate of up to Rs 1,940 crore.
The bottomline figure improved significantly due to a sharp drop in provisions and non-performing assets and strong loan growth during the quarter.
The lender’s net interest income (NII) rose 18% YoY and 4.5% QoQ to Rs 4,495.34 crore in Q3 FY23 and net interest margin (NIM) improved to 4.27% as compared to 4.1 in the year-ago quarter and 4.24% in the preceding quarter.
IndusInd Bank’s deposits in the quarter under review grew by 14% YoY to Rs 3,25,278 crore and CASA climbed by 14% YoY.
The Mumbai-based lender’s asset quality also improved in Q3 FY23, as its gross NPA lowered to Rs 5,710.78 crore from Rs 5,779.27 crore in Q3FY22, but net NPA rose to Rs 1,681.45 crore from Rs 1,633.21 in the year-ago period.
In percentage terms, the gross NPA reduced significantly to 2.06% in Q3FY23 from 2.48% in the year-ago period and 2.11% in Q2, while the net NPA remained at 0.62% from 0.71% in Q3 FY22.
The bank’s provisions tanked 35.63% YoY and 6.69% QoQ to Rs 1,064.73 crore in Q3 FY23.
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