Result Analysis: IndusInd Bank Limited (CMP: Rs.1102) Result Update: Q4FY23

IndusInd Bank is one of the fastest growing private bank in India engaged in providing a wide range of banking products and financial services to corporate and retail clients. It is the fifth largest private bank in India promoted by the Hinduja group. The products and services offered by the bank includes microfinance, personal loans, personal and commercial vehicles loans, credit cards, SME loans. The bank is working with a widespread network of over 2,606 branches and 2,878 ATMs across country.


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    Stock Details
    Market Cap. (Cr.) 85507.53
    Equity (Cr.) 775.90
    Face Value 10
    52 Wk. high/low 1275 / 764
    BSE Code 532187
    Book Value (Rs) 704.38
    Sector Banks


    Key Ratios
    ROE (%): 10.57
    TTM EPS: 95.93
    P/BV: 1.56
    TTM P/E: 11.49

    Result Highlights:

    • IndusInd bank reported a huge increase of 49.9% YoY in the consolidated net profit due to increased core income and lower provisions. Provisions of the bank has declined by almost 30% YoY in Q4.
    • Net Interest Income of the bank has grown by 17% YoY to Rs.4,669 cr. While Net Interest Margin slightly improved by 8 bps to 4.28% on YoY basis.
    • Banks’s deposits grew by 15% YoY to Rs.3,36,120 cr. and advances grew by 21% YoY to Rs.2,89,924 cr.
    • On yearly basis, corporate advances grew by 23% and consumer loans grew by 20%. Out of the total consumer loans segment, vehicle loans grew by 22%, non-vehicle loans grew by 30% and Microfinance grew by 5%.
    • CASA deposits has grown by 7% YoY with savings account deposits at Rs.84,128 cr. and current account deposits at Rs.50,600 cr. CASA ratio of the bank declined in the quarter with 300 bps YoY to 40%.
    • Asset quality of the bank has improved with Gross NPA at 1.98% Vs 2.06% QoQ and Net NPA ratio at 0.59% Vs 0.62% QoQ in the March quarter.
    • Cost to Income ratio has increased to 44.9% in Q4FY23 Vs 43.9% of Q3FY23 and 42.6 of Q4FY22.
    • The board has recommended a dividend of Rs.14/share in the last quarter of FY23.

    Financial Performance:

    Shareholding Pattern:

    Particulars (In %) Q4FY23 Q4FY22
    Promoters Group 15.15 15.17
    FIIs 40.18 52.16
    DIIs 24.80 20.05
    Public 16.45 8.86
    Others 3.42 3.76

    Management Commentary:

    Commenting on March quarter performance, Sumant Kathpalia, Managing Director & CEO, said, The quarterly Net Profit thus crossed ₹2,000 crore mark for the first time at ₹2,043 crores – up 4% QoQ and 46% YoY. The full year profit was at ₹7,443 crores – up 55% YoY and Net Worth of the Bank is in excess of Rs 50,000 crores at ₹52,848 crores. The GNPAs and NNPAs trended down to 1.98% and 0.59% respectively. The Bank also announced its next three-year strategy with Growth, Granularity and Governance as key pillars to achieve higher market share with diversification in risk. With stable macro-economic environment and recovery in key businesses, the bank is confident of achieving its growth ambitions


    IndusInd Bank has reported Q4FY23 results that are in line with expectations, showing a net profit growth of around 50%. The bank has maintained a consistent operating performance across all segments, with steady margins and controlled provisions. Despite the addition of slippages quarter over quarter, the bank’s asset quality has remained stable. The management of the bank expects, 18%-23% credit growth and NIM to be in the range of 4.25-4.35% over FY23-FY26. We remain optimistic about the bank’s long-term prospects given its strong operational performance, stable asset quality and steady net interest margins.


    Particulars (In Rs. Cr.) Q4FY23 Q3FY23 Q4FY22 QoQ% YoY% FY23 FY22 YoY%
    Interest Earned 10,021 9,457 7,860 6.0% 27.5% 36,368 30,822 18.0%
    Interest Expended 5,351 4,962 3,875 7.8% 38.1% 18,776 15,822 18.7%
    Net Interest Income 4,669 4,495 3,985 3.9% 17.2% 17,592 15,001 17.3%
    Operating Profit 3,753 3,680 3,327 2.0% 12.8% 14,346 12,776 12.3%
    Provisions 1,030 1,065 1,462 -3.3% -29.5% 4,487 6,602 -32.0%
    Tax 682 656 504 3.9% 35.5% 2,470 1,563 58.1%
    Net Profit after tax 2,041 1,959 1,361 4.2% 49.9% 7,390 4,611 60.3%
    Deposits 3,36,438 2,93,681 14.6%
    Advances 2,89,924 2,39,052 21.3%
    Ratios (%) Q4FY23 Q3FY23 Q4FY22 QoQ YoY
    Gross NPA 1.98 2.06 2.27 -8 bps -29 bps
    Net NPA 0.59 0.62 0.64 -3 bps -5 bps
    Net Interest Margin 4.28 4.27 4.20 1 bps 8 bps
    Capital Adequacy Ratio 17.9 18.0 18.4 -15 bps -56 bps
    Slippages (In Rs. Cr.) 1603 1467  2088 136 -485
    CASA Ratio 40 42 43 -200 bps -300 bps
    Source: Company website, EWL Research

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