MUMBAI:
The Board of Directors of IndusInd Bank Limited approved the Bank’s results for the quarter ended September 30, 2020, at their meeting held in Mumbai on Friday, October 30, 2020.
The Business was highly impacted in Q1FY21 due to lockdown since March 24, 2020 to mitigate the spread of COVID-19 pandemic. The calibrated unlocking commenced from June 01, 2020; and industrial and consumer spends are near pre-Covid levels in some areas.
NIM at 4.16%, Net NPAs at 0.52%, Provision Coverage Ratio at 77%, Capital adequacy (CRAR) ratio at 16.55% and Liquidity Coverage Ratio at 140% underscore the strength of operating performance and adequacy of capital & liquidity buffers.
CONSOLIDATED FINANCIAL RESULTS
The Bank’s consolidated financial results include the financial results of its wholly owned subsidiary, Bharat Financial Inclusion Limited (BFIL), a business correspondent (BC) of the Bank involved in originating small ticket MFI loans and associate entity, IndusInd Marketing & Financial Services Private Limited (IMFS) under the recognition and measurement principles as per Indian GAAP.
Profit & Loss Account for the quarter ended September 30, 2020 Pre Provision Operating Profit (PPOP) at Rs. 2,852 crore for the quarter ended September 2020 as against Rs 2,623 crore for the corresponding quarter of previous year. PPOP /Assets ratio for the quarter ended September 2020 stood at 3.66% compared to 3.57% in the corresponding quarter of previous year.
Key Highlights
o Net Interest Income grew by 13% Y-o-Y
o NIM stood at 4.16% for Q2FY21
o Net NPA improved to 0.52% as at Q2FY21 from 0.86% as at Q1FY21
o Net Profit grew 30% sequentially
o Strong deposit growth to Rs. 2.28 lakh crore at Q2FY21 from Rs. 2.11 lakh crore
at Q1FY21
o CRAR is at 16.55%
For the quarter ended September 30, 2020, the Bank earned Total Income (Interest Income and Fee Income) of Rs. 8,732 crore as compared to Rs. 8,878 crore for the corresponding quarter of previous year. For the quarter ended September 30, 2020, Total expenditure (Interest expended and Operating expenses) reduced to Rs. 5,880 crore as compared to Rs. 6,254 crore for the corresponding quarter of previous year.
Net Interest Income for the quarter ended September 30, 2020 increased to Rs. 3,278 crore from Rs. 2,909 crore for the quarter ended September 30, 2019. Net Interest Margin for Q2FY21 at 4.16%. Fee income at Rs. 1,554 crore for the quarter ended September 30, 2020 as against Rs 1,727 crore for the corresponding quarter of previous year. Operating expenses for the quarter ended September 30, 2020 were Rs. 1,980 crore as against Rs. 2,013 crore for the corresponding quarter of previous year.
Profit & Loss Account for half year ended September 30, 2020
Pre Provision Operating Profit (PPOP) at Rs. 5,780 crore for the half year ended September 30, 2020 over the corresponding previous half year at Rs. 5,214 crore. For the half year ended September 30, 2020, the Bank earned Total Income (Interest Income and Fee Income) of Rs 17,414 crore as compared to Rs. 17,502 crore for the corresponding previous half year. For the half year ended September 30, 2020, Total expenditure (Interest expended and Operating expenses) reduced to Rs.11,634 crore as compared to Rs. 12,288 crore for the corresponding previous half year.
Net Interest Income for the half year ended September 30, 2020 increased to Rs. 6,587 crore, up by 14 % from Rs. 5,753 crore corresponding previous half year. Fee income at Rs. 3,075 crore for the half year ended September 30, 2020 as against Rs 3,390 crore for the corresponding previous half year. Operating expenses for the half year ended September 30, 2020 were Rs. 3,882 crore as against Rs. 3,929 crore for the corresponding previous half year.
