IndusInd Bank (INDUSINDBK) Q1 24/25 earnings summary

Executive summary

• Domestic economic activity remained robust with GDP growth of 8.2% in FY24, and both loans and deposits grew 15% year-over-year in Q1 FY25, supported by strong digital transaction share of 93%.

• Net profit rose 2% year-over-year to ₹2,171 crore, with net interest income up 11% and total income up 11% year-over-year.

• Maintained robust capital adequacy (CRAR 17.55%), high liquidity (LCR 122%), and strong asset quality (GNPA 2.02%, NNPA 0.60%, PCR 71%).

• Continued focus on digital transformation, rural expansion, and ESG initiatives, with notable awards for digital banking innovation.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board on July 26, 2024.

Financial highlights

• Net interest income grew 11% year-on-year and 1% quarter-on-quarter to ₹5,408 crore; net interest margin stable at 4.25%.

• Total revenue for the quarter was ₹7,849 crore, up 11% year-on-year; operating profit was ₹3,952 crore, up 3% year-on-year.

• Consolidated net profit for Q1 FY25 was ₹217,079 lakhs, up from ₹212,450 lakhs in Q1 FY24.

• Gross NPA and net NPA at 2.02% and 0.60% respectively; provision coverage ratio at 71%.

• Return on assets: 1.70%; return on equity: 13.52%.

Outlook and guidance

• Full-year loan growth guidance maintained at 18%-22%; deposit growth expected to reach 17%-18% in the coming quarter.

• Emphasis on expanding branch network, targeting new market segments, and scaling up affluent, NRI, and rural businesses.

• Credit cost guidance for the year at 110-130 basis points, including excess provisions.

• Implementation of new RBI investment portfolio classification norms from April 1, 2024, with a net gain of ₹16,526 lakhs (net of taxes) credited to General Reserve.

• Focus on maintaining strong asset quality and capital adequacy while pursuing risk-calibrated growth.