Private lender IndusInd Bank on Friday reported a 190% year-on-year (y-o-y) jump in its net profit to Rs 876 crore for the quarter ended March 2021 due to the fact of healthful interest earnings and lowered provisioning. Provisions declined 24% y-o-y to Rs 1,866 crore.
The lender’s operating profit elevated 8% y-o-y to Rs 3,062 crore as the net interest earnings (NII) grew 9.4% y-o-y to Rs 3,535 crore.
Sumant Kathpalia, MD and CEO, IndusInd Bank, stated: “There is a little bit of slowdown right now because of Covid-19. We will re-asses the situation in May.” The bank will continue to concentrate on collections, Kathpalia stated. The collection efficiency through the March quarter remained at 98%.
The net interest margins (NIM) of the lender declined 12 basis point (bps) y-o-y to 4.13%, but showed a development of 1 bps on a sequential basis.
The asset high quality deteriorated a bit through the March quarter, soon after the standstill on declaring non-performing assets was lifted by the apex court. Gross non-performing assets (NPAs) ratio elevated 93 bps to 2.67%, compared to 1.74% in the earlier quarter. Similarly, net NPAs ratio elevated 47 bps to .69% from .22% in the December quarter. The provisioning coverage ratio (PCR) remained at 75% in the fourth quarter.
The lender claimed that charge earnings was back to pre-covid levels. The core charge elevated 8% y-o-y and 8% q-o-q to Rs 1,508 crore. Operating expenditures for the quarter ended March 31, 2021 grew marginally to Rs 2,186 crore, as against Rs 2,148 crore for the corresponding quarter of the earlier year. Tax expenditures for the period elevated 240% to Rs 319.89 crore.
Advances grew 3% y-o-y to Rs 2.12 lakh crore. Deposits grew 27% y-o-y to Rs 2.55 lakh crore. Current account savings account (CASA) deposits stood at Rs 1,06,791 crore with existing account deposits at Rs 35,726 crore and saving account deposits at Rs 71,065 crore. CASA deposits comprised 42% of total deposits as of March 31, 2021.
The capital adequacy ratio (Auto) stood at 17.38% with CET1 ratio of 16.83% at the finish of March 2021.