IndusInd Bank (INDUSINDBK) Q1 24/25 earnings summary

Executive summary

• Domestic economic activity remained robust with GDP growth of 8.2% in FY24, and manufacturing and services sectors showed continued strength.

• Achieved 15% year-over-year growth in both loans (₹3,47,898 cr) and deposits (₹3,98,513 cr) for Q1 FY25, with a diversified mix and 93% digital transaction share.

• Net profit rose 2% year-over-year to ₹2,171 cr, 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.

Financial highlights

• Deposit growth reached 15% year-on-year and 4% quarter-on-quarter; retail deposits grew 16% year-on-year.

• Loan growth was 15% year-on-year, with retail loans up 18% and corporate loans up 13% year-on-year.

• Net interest income: ₹5,408 cr (up 11% YoY, 1% QoQ); operating profit: ₹3,952 cr (up 3% YoY); net profit: ₹2,171 cr (up 2% YoY).

• Revenue: ₹7,849 cr (up 11% YoY); cost-to-income ratio: 49.65%.

• 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.

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

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

• 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.