IndusInd Bank Q3 Results Review - Inline Performance; Steady Growth To Drive Valuation: ICICI Direct
Net interest income growth was at 18.5% YoY, 4.5% QoQ to Rs 4495 crore, driven by strong business growth and steady margins.
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ICICI Direct Report
IndusInd Bank Ltd. reported a steady set of numbers inline with our estimates. Net interest income growth was at 18.5% YoY, 4.5% QoQ to Rs 4495 crore, driven by strong business growth and steady margins (QoQ).
Sequentially margins inched up by 3 basis points to 4.27% (up 17 bps YoY). Other income was up 10.6% YoY to Rs 2076 crore, driven by healthy growth of 28% YoY, 4% QoQ in core fee income at Rs 1941 crore.
IndusInd Bank's cost/income ratio declined 25 bps QoQ at ~44% but YoY it increased by 52 bps. Provisions were down 6.7% QoQ and 35.6% YoY to Rs 1065 crore. Thus, net profit was up 68.7% YoY and 9.7% QoQ to Rs 1959 crore (versus our estimate of Rs 1915 crore).
Gross non-performing asset improved by 5 bps QoQ at 2.06% while net non-performing asset was range bound at 0.62%. Restructured book further declined by 24 bps QoQ to 1.25%. Slippages were at Rs 1467 crore versus Rs 1572 crore in Q2 FY23, with slippages from restructured pool at Rs 332 crore versus Rs 580 crore QoQ.
GNPAs (in absolute terms) increased in consumer segment, while corporate segment witnessed a decline QoQ. Overall loan related provisions declined to 2.7% versus 3.0%of loans in the previous quarter
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