The lender had earned a net profit of ₹2,124 crore in the year-ago period.
The net interest income – the difference between interest earned and paid – rose 11.1% to ₹5,408 crore. Net interest margin (NIM) for the June quarter came in at 4.25%.
“It was a challenging quarter. Collections and cautious disbursements were the key focus during the quarter given the external disturbances,” said Sumant Kathpalia, MD & CEO, IndusInd Bank. “We aim to achieve credit costs between 110 bps to 130 bps given that a seasonally weak and turbulent quarter is behind us. Quarter 1 is generally seasonally weak with added disturbances from external factors. The disbursements are already picking up and we remain committed towards 18-23% lending growth.”
Asset quality metrics deteriorated sequentially. The gross non-performing asset ratio for the June quarter was at 2.02% versus 1.92% in the quarter ending March 2024. GNPA ratio was at 1.94% a year ago. Net NPA for the quarter 0.60%.The rise in NPA came from segments such as microfinance (5.16%), cards (3.07%), loans against property (3.14%) and commercial vehicles (1.07%). Fresh slippages or the formation of new bad loans was at ₹1,536 crore, almost ₹1,488 crore came from the consumer book.Provisions other than tax and contingencies rose to ₹1,050 crore, as against ₹992 crore during the same quarter a year ago.
The bank grew its total loans by 15% on year to ₹3.48 lakh crore. It grew only 1% sequentially as loan growth in the microfinance book fell by more than 5% while growth in credit cards was almost flat. Corporate loans were up 12.8% on year to ₹1.57 lakh crore. -Our Bureau
