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IndusInd Bank’s Net Profit Rockets by 58% to ₹1963 Crores

Displaying interesting results in its third quarter IndusInd Bank posted an impressive loan growth of 19 percent year-on-year, being faster than the earlier seven quarters. One of the fast-growing private sector lenders, IndusInd Bank reported an impressive 58 percent growth of ₹1,963.54 crores in its consolidated net profit for the third quarter ending December 2022 exceeding the market expectations by a big difference.

The average projection made by the five brokerage firms about IndusInd Bank’s net profit had pegged at ₹1836 crores for the third quarter. The bank’s net profit in the third quarter last year was reported at ₹1241.39 crores. This displayed IndusInd Bank’s rise, on a standalone basis, in the net profit by a whopping 68 percent to ₹1959 crores from ₹1161 crores an year back.

A sharp drop of 37 percent in provisions for the quarter to ₹1064.73 crores from ₹1654.20 crores last year, was one of the partial influencers driving the growth in its net profit. A sizeable reduction in bad loans were reflected in the drop in provisions of IndusInd Bank. The gross bad loans in its loan book reflected a drop 2.06 percent from 2.11 percent the previous year. Its bad loans were only 0.62 percent of its loan book on a net basis. The bank’s gross bad loans after the 1.18 percent drop, counted to ₹5702 crores lesser from ₹5779 crores of the last year.

The bank’s fresh slippages also saw a drop from ₹1,572 crores of the last year to ₹1,467 crore for the third quarter this year. However, its gross bad loans from the microfinance loan book reflected a surge from ₹885 crores previous year to ₹1153 crores instilling fresh stress. A mild stress was reflected from its vehicle finance loan book too.