IndusInd Bank has reported its financial performance for the second quarter of fiscal year 2025, showing a mixed bag of results. The bank’s Net Interest Income (NII) grew by 5% year-on-year (YoY) to ₹5,347 crores, demonstrating steady growth in core banking operations. However, the bank’s net profit saw a significant decline of 40% YoY, settling at ₹1,331 crores for the quarter.
IndusInd Bank: Key Financial Highlights:
- Loans: IndusInd Bank’s total loan book expanded by 13% YoY, reaching ₹3,57,159 crores, indicating strong demand for credit.
- Deposits: Total deposits grew by 15% YoY to ₹4,12,397 crores, supported by a steady growth of 5% in the Current Account Savings Account (CASA) deposits, which now stand at ₹1,47,944 crores.
- Total Assets: The bank’s total assets increased by 14% YoY to ₹5,43,407 crores.
IndusInd Bank: Profit & Loss Statement:
- Net Interest Income (NII): The bank’s NII rose by 5% YoY to ₹5,347 crores, though it declined marginally by 1% on a quarter-on-quarter (QoQ) basis.
- Total Other Income: Total other income dropped by 4% YoY, registering ₹2,185 crores, while the revenue saw a 2% YoY growth, amounting to ₹7,532 crores.
- Operating Profit: IndusInd Bank’s operating profit fell by 8% YoY to ₹3,600 crores.
- Net Profit: The most notable decline came in net profit, which dropped by 40% YoY and 39% QoQ, resulting in ₹1,331 crores for the quarter.
IndusInd Bank Key Ratios:
- Net Interest Margin (NIM): The bank’s NIM declined by 21 basis points YoY to 4.08%, reflecting pressures on margins.
- Return on Assets (RoA): IndusInd Bank reported a RoA of 1%, down by 70 basis points QoQ.
- Return on Equity (RoE): The RoE dropped significantly by 722 basis points YoY to 8.11%, indicating lower profitability during the quarter.
- Cost-to-Income Ratio: The bank’s cost-to-income ratio increased to 52.21%, up by 533 basis points YoY, reflecting higher operating expenses.
IndusInd Bank Asset Quality:
- Net Non-Performing Assets (NPA): The bank’s asset quality remained stable, with net NPAs standing at 0.64%, showing a slight improvement of 7 basis points YoY and 4 basis points QoQ.
Overall, while IndusInd Bank has shown resilience in growing its NII and maintaining asset quality, the sharp decline in net profit reflects challenges in operational efficiency and profitability. The management will need to focus on addressing cost pressures and improving margins in the coming quarters.
TOPICS:
IndusInd bank