IndusInd Bank Q3 Operating Profit at Rs. 2,117 crores, up 27% Credit growth up by 35% Y-o-Y

MUMBAI:
The Board of Directors of IndusInd Bank Ltd. today approved and adopted its Unaudited Financial Results for the third quarter and nine month ended December 31, 2018.

Performance highlights for the quarter ended December 31, 2018:

Net Interest Income (NII) for the quarter is Rs. 2,288 crores as against Rs. 1,895 crores in the corresponding quarter of the previous year, a growth of 21%.

Non Interest Income for the quarter is Rs. 1,469 crores as against Rs. 1,187 crores in the corresponding quarter of the previous year, registering a robust growth of 24%. Core fee income for the quarter is Rs. 1,266 crores as against Rs. 1,077 crores in Q3 FY18, a growth of 18%.

Operating Profit for the quarter is Rs. 2,117 crores as against Rs. 1,665 crores in Q3 FY18, showing a growth of 27%.

Net Profit for the quarter is Rs. 985 crores (after considering prudential contingency provision of Rs. 255 crores) as against Rs. 936 crores in Q3 FY18, showing a growth of 5%.

Net Credit Cost stood at 17 bps (basis point on Advances) in current quarter as against 14 bps (basis point on Advances) in Q3 FY18.

Advances granted to various companies and SPVs belonging to a Group in the infrastructure sector against certain identified cash flows and pertaining to specific assets, are ‘Standard’ as at December 31, 2018 on the basis of the conduct of the accounts till date. Since October 01, 2018, certain governance and management changes have taken place in the Group and measures to turn it around through a Resolution Plan are underway. Bank’s management is monitoring the developments and implications of the Resolution Plan. In the interim, as a prudential measure, the Bank has made a contingent provision of Rs. 255 crores on these ‘Standard’ assets during the quarter ended December 31, 2018, in addition to an amount of Rs. 275 crores made during the quarter ended September 30, 2018. Total provisions attributable to this exposure is Rs. 600 crores.

Performance highlights for the nine month ended December 31, 2018:
Net Interest Income (NII) for the nine month ended December 31, 2018 was Rs. 6,614 crores as against Rs. 5,490 crores in the corresponding period of the previous year, registering a robust growth of 20%.

Core fee income was Rs. 3,649 crores as against Rs. 3,064 crores in the corresponding period of the previous year, marking a growth of 19%.

Operating Profit for the nine month ended December 31, 2018 was Rs. 6,021 crores as against Rs. 4,887 crores in the corresponding period of the previous year, a growth of 23%.

Net Profit for the nine month ended December 31, 2018 was Rs. 2,941 crores (after considering prudential contingency provision of Rs. 530 crores) as against Rs. 2,653 crores in the corresponding period of the previous year, showing a growth of 11%.

Net Interest Margin (NIM) for the nine month ended December 31, 2018 was 3.85% as against 4.00% in the corresponding period of the previous year.

CASA (Current Account – Savings Account) Ratio improved to 44% against 43% and Current account deposit grew by 30% Y-o-Y from Rs. 20,370 crores as on December 31, 2017 to Rs. 26,526 crores as on December 31, 2018.

Advances as on December 31, 2018 were at Rs. 1,73,169 crores as compared to Rs. 1,28,542 crores in the corresponding period of the previous year, recording a growth of 35%.

Deposits as on December 31, 2018 were at Rs. 1,75,701 crores as compared to Rs. 1,46,086 crores in the corresponding period of the previous year, up by 20%. Total Business at Rs. 3,48,870 crores.

Gross NPA as on December 31, 2018 was at 1.13% as against 1.16% as at December 31, 2017.

Net NPA as on December 31, 2018 was at 0.59 % as against 0.46 % as at December 31, 2017.

Increase in network to 1558 Branches/Banking outlets and 2453 ATMs as on December 31, 2018 as against 1320 Branches and 2162 ATMs as on December 31, 2017.

Commenting on the performance, Romesh Sobti, MD & CEO, IndusInd Bank said, ” The quarter witnessed a robust growth in its topline and core Operating Profit. During the quarter, we introduced ‘Nexxt’ credit card – India’s first interactive card that enables customers to switch between multiple payment options, thereby offering them with absolute flexibility. Going forward, the Bank will continue to delve deep into creating more such innovative offerings to provide customers with a rewarding banking experience.”